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indiantelevision.com Team
MUMBAI: Rupert Murdoch?s News Corporation will become the majority shareholder in Sky Deutschland with a 54.5 per cent stake in the loss making German media company.
News Corporation, which holds 49.9 per cent stake in Sky Deutschland, has reached an agreement with the company and its new bank syndicate to support both a new financing structure and the issuance of ?438 million of new equity.
The new bank financing, which will be guaranteed by News Corporation, will replace Sky Deutschland?s current bank debt facilities.
As a result of this transaction Sky Deutschland will become a consolidated entity of News Corporation, the company said in a statement.
Under the new financing structure, News Corporation has committed to provide a guarantee to Sky Deutschland?s lending banks and to act as guarantor to the German Football League (DFL) for Sky Deutschland?s new Bundesliga broadcasting license for the 2013-17 seasons in an amount of up to 50 percent of the license fee per season.
"We have always believed in Sky Deutschland?s ability to transform the pay TV experience in Germany and Austria and this new financing structure further validates that longstanding commitment," said News Corporation President and COO Chase Carey.
"News Corporation?s continued investment underscores the value we see in Sky Deutschland and the significant market opportunities it faces, and reflects our confidence in its management team and their strategies for growth."
The move comes as the company is in the process of splitting its profitable media and entertainment business from the loss making publishing business. The M&E entertainment company will be known as Fox Group while the publishing entity will retain the name News Corporation.
Earlier, Rupert Murdoch?s News Corp, which owns 39.1 per cent in BSkyB, had made a failed attempt to taking full control of the UK pay-TV operator due to the phone hacking scandal.
