BSkyB plans to create European TV superpower

chris

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BSkyB has reached a deal with 21st Century Fox to buy 100% of Sky Italia and 57.4% of Sky Deutschland for £4.9 billion and BSkyB’s 21% stake in the National Geographic channel, a deal worth in the region of £5.4 billion.

BSkyB chief executive Jeremy Darroch feels that this move will make BSkyB “a world-class, multinational pay TV business” and the dominant European pay-television giant. With the acquisition, BSkyB now owns ¾ of the largest pay TV markets in Europe. Furthermore, and maybe more importantly, the company has expanded their potential customer base from roughly 30 million households to almost 100 million.

As Nick Ferguson, the chairman of BSkyB, has pointed out, the move “will deliver growth and value creation for all shareholders”. 70% of all households in Italy and Germany do not pay for their television subscription currently; therefore, BSkyB now has a market of roughly 70 million consumers (including the rest of the UK market) that they can target.

This move comes after BSkyB received half a billion pounds from selling its stake in ITV to Liberty Global. Now, 21st Century Fox are looking to reinvest their funds to take over Time Warner (the owner of CNN and Warner Bros studio).

With stronger than expected results for the end of the 2013-14 financial year, and the potential for total market penetration in two of the biggest European markets, BSkyB is going from strength to strength. However, there are also sceptics who say that both the new markets have little interest in paid subscriptions and that this move COULD end badly.

With the above in mind, BSkyB has already forecasted that they expect neutral earnings in the second full financial year of the acquisition, and that they expect to be “strongly accretive thereafter”, which, if correct, will see BSkyB go from strength to strength.
 

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Lazarus

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Clearly anti-competitive.
 

PaulR

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I fear for the future of Time Warner.
 

Analoguesat

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How long before they start hoovering up other European pay tv providers?? Theres enough not doing great that could be targets.
 

A nonymous

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All its going to do is make subscriptions higher for everyone involved.
As for other providers I doubt even the Mighty Sky would bother with companies that are only just breaking even or are making little profit.

I doubt that Canal would give up their companies to Sky without a fight.

Nano
 

bim

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Big brother on the way 1984 was he right!!!!!! If they want to know, I'm regular after my first cup of tea at 5.30am!!
 

timo_w2s

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On the other hand, if Sky does buy up some of the other operators in other countries the viewers there might one day be able to enjoy decent hardware/firmware. Over the years I've used many receivers from various parts of the world and for a casual TV viewer (ie non-technical user who just wants to watch and record TV) I think the Sky box is one of the best and easiest to use.
 

woborny

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Here in Spain, Telefonica / Movistar are in the process of getting Canal+ / Digital +...

Much to the disappointment of some expats here who thought that if Sky bought it, it would mean regained reception of BBC ITV etc :-)
 

Captain Jack

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Pretty soon Canal+ will only be available in France and perhaps Poland.
 

excollier

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Sounds hellish for poor pay tv suckers...er sorry subscribers.
Bill Gates and Rupert Murdoch are determined to monopolise their branches of the digital world...:mad: they must be stopped...join the resistance now!!:-Guill
Use Freesat and Linux, stop the rot!!!;)
 
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