BSkyB Murdoch takeover?

Rumours are circulating that Robert Murdoch will pay a lump sum of £6bn in order to take over BSkyB with a 61% share in the company even though he does not own it causing the overall share price of the company to reach a two year high last Friday closing at 598p up 5% leaving the overall value of the company weighing in at £9.8bn.

In fact, there were even some signs that the offer may end increasing the share prices to an area that ranges between 725p and 727p.

Neither BSkyB nor Murdoch’s media company, News Corp, were ready to comment on the matter.

However, there are a few reasons why Murdoch may want to take over the company which his son happens to be the chairman of.

Ofcom this month plans to publish a report of the pay TV market and has already preliminarily stated that BSkyB will share its right to the Premier League football airing and first run of most Hollywood blockbusters with rivals.

Analysts in the city believe that Murdoch is aware of this fact and is betting on the Conservative win of the general election under the expectation that this government would be sympathetic of the fact that BSkyB should have the right to keep their assets given the fact that they paid a great deal of money for them.

However, this would be a large scale gamble for Murdoch which is why the more acceptable theory is that Murdoch will use the acquisition of BSkyB in order to enter additional markets as pay TV continues to grow across the continent.