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Friday, July 25, 2014

BSkyB to pay $9 billion to create Sky Europe, (NYSE: TWX)

Britain's BSkyB has agreed to pay $9 billion to purchase Rupert Murdoch's pay-TV companies in Germany and Italy, taking its hunt for growth into Europe by creating a media powerhouse with 20 million customers.BSkyB, in which Murdoch's 21st Century Fox is also the largest shareholder, will pay for the deal using cash, debt, its stake in a TV channel and a placing of shares that represents around 10 percent of its issued share capital.The deal adds to a flurry of consolidation in the global media sector as traditional entertainment companies seek to bulk up to compete against more nimble Internet rivals.Fox is expected to use the proceeds to fuel its pursuit of Time Warner, which recently rejected Fox's initial $80 billion bid.

Time Warner Inc. (Time Warner) is a media and entertainment company. Shares of TWX traded higher by 0.64% or $0.54/share to $84.55. In the past year, the shares have traded as low as $57.59 and as high as $88.13. On average, 7465530 shares of TWX exchange hands on a given day and today's volume is recorded at 1083831.