|
BSkyB links with Kirch
|
 |
December 6, 1999: 4:46 a.m. ET
Murdoch's U.K. unit joins forces with German pay-TV giant in $1.5B deal
|
LONDON (CNNfn) - Rupert Murdoch's BSkyB is buying a 24 percent stake in Germany's leading pay-TV company, KirchPayTV, for $1.5 billion, the companies announced Monday.
BSkyB (BSY) is 40 percent owned by Murdoch's News Corp., and is the largest pay-television operator in Britain.
Breaking into Continental European television has been one of Murdoch's goals for some time, although his efforts have not always been successful. In particular, attempts to build partnerships in France have foundered upon a dispute over management control with Vivendi (PEX), which runs Europe's largest pay-TV company, Canal Plus (PAN). Persistent rumors have made BSkyB a target of Vivendi, which owns a 25 percent holding in the U.K. firm.
BSkyB has long been viewed as Kirch's most likely partner, offering a way for the British company to enter Europe's largest television market. While 33 million homes in Germany have a television, Kirch has 2 million subscribers to its satellite and cable offerings.
BSkyB and privately-owned KirchGruppe, parent of KirchPayTV, said they aim to sell shares in the pay-TV company to the public in 2003.
"This acquisition gives BSkyB the opportunity to acquire a significant foothold in the German market," BSkyB Chief Executive Tony Ball said in a statement.
BSkyB is paying 1 billion marks ($512 million) in cash and issuing 78 million of its shares to KirchPayTV to fund the deal, giving a total value of 2.9 billion marks ($1.5 billion). That leaves KirchPayTV with a 4 percent stake in The U.K. company.
The tie-up is subject to approval from European antitrust regulators. The European Commission in 1998 blocked a tie between Kirch and German rival Bertelsmann.
KirchGruppe is one of the most powerful media firms in Germany, owning large chunks of the free-to-air television business as well as publishing assets. 
|
|
|
|
|
|
BSkyB
KirchGruppe
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
