Home Investment Fox Bids To Acquire Sky For $14.1B

Fox Bids To Acquire Sky For $14.1B

SHARE:

murdochTwenty-First Century Fox revealed on Friday a preliminary bid to buy out the rest of British pay TV provider and telco Sky for $13.51 per share for a total of about $14.1 billion. Fox already owns a 39.1% stake in the company.

In 2010, Rupert Murdoch’s News Corp. attempted to take over Sky (called British Sky Broadcasting at the time), but tabled the deal over pressures surrounding a phone hacking scandal at News International.

While telcos and TV providers are consolidating, Murdoch might have a more immediate motivation in buying the rest of Sky.

“It’s a hedge against exposure to the US for Sky,” said Brian Wieser, a senior equity analyst at Pivotal Research. “It’s always been known to Fox and Sky shareholders alike that Murdoch always wanted to combine the two companies, so the reasons for that combination are almost less important than, ‘They wanted to do it eventually.’”

There are, however, synergies beyond Murdoch’s personal motivations. Both companies are active ad tech investors. Fox bought true[x] for $200 million in 2014 and Sky invested $10 million in demand-side platform and DMP DataXu last year. 

And both broadcasters have addressable and advanced TV divisions.

At Fox, that’s led by Joe Marchese, its president of advanced advertising and formerly true[x]’s CEO. And Sky’s media and advertising division, Sky Media, focuses on addressable TV ads and partners with companies like Videology to create cross-screen video solutions.

Wieser sees more ways the two companies can align around media.

In markets where pay TV is less penetrated than in the US, Sky could benefit from licensing its content or programming to Fox more widely, Wieser hypothesized.

Fox could also foreseeably use Sky’s addressable TV ad server, AdSmart, to serve ads targeted to different household demographics and data attributes.

And if Fox were to close its deal with Sky, both would gain regional expertise.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

“The UK market is very different than the US,” Wieser said. “There’s no such thing as local advertising on TV historically in the UK, and AdSmart made it possible to do more in addressable.”

“TV is not a global thing from an advertiser’s perspective,” he added. “It’s very localized,” which would prove mutually beneficial.

Must Read

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.