News Corp, the Rupert Murdoch owned communications giant, will apparently need to raise its bid for BSkyB. The pay TV group is stridently heading for its target market at 10 million customers, despite the 700 pence a share News Corp is offering BSkyB to acquire the 61 per cent of BSkyB that it does not own now.
BSkyB preformed much better doing the first quarter than it was believed they would. They attracted record numbers of customers and sold more services than projected. All of this should help to bring News Corp around to the 800 pence a share that BSkyB wants to get.
BSkyB executives say that rather than concentrating on the acquisition, they are concentrating on doing business, and that seems to be obvious from the unexpected growth. They say that they are very near their long-term projection of 10 million total customers in 2010.
It certainly doesn’t hurt that the increase in volume of customers will push up the stock value and bring them closer to their asking price.
At this time, BSkyB is more focused on increasing its customer base and working alongside News Corp to help gain regulatory approval. They say the money amounts have yet to be finalized and are of little consequence until approval is granted
British analysts believe that News Corp must eventually offer monies more in the range of what BSkyB is seeking and that the pay TV group’s realization of that fact takes a lot of the pressure of the deal off them.