BskyB Confirms Preliminary Discussions with Fox over European Pay-TV

On Monday,

issued an email statement regarding rumors of

interest in Sky Deutschland and Sky Italia. BSkyB reported that it plans to grow business in the United Kingdom and in Ireland and increase shareholder value. In the email, the company commented, “As part of this approach, the Company initiated preliminary discussions with 21st Century Fox to evaluate the potential acquisition of its pay-TV assets in Germany and Italy. BSkyB believes at the right value, this combination would have the potential to create a world-class multinational pay TV group.” As discussions are in the preliminary stage, the email emphasizes that no agreement has been reached and there is no certainty that a transaction will occur. BSkyB added that a potential deal would be “subject to external factors including the Sky Deutschland share price continuing to trade on an undisturbed basis. BSkyB's focus in respect of Sky Deutschland would be to acquire 21st Century Fox's controlling stake (57 per cent on a fully diluted basis). As a consequence BSkyB would be required to make a takeover offer to the public minority of Sky Deutschland in accordance with relevant German legislation.” In a press release by Twenty-First Century Fox, a spokesperson for the company stressed that no agreement has been made. The person remarked, “Over the years we've had numerous internal discussions regarding the organizational and ownership structure of the European Sky-branded satellite platforms. From time to time these conversations have included BSkyB, however no agreement between the parties has ever been reached.” Shares of Twenty-First Century Fox closed at $34.15 on Friday and are currently trading at $35.24, up more than 3.19 percent.