BSkyB 'eyeing Spanish pay TV firm'
Broadcasting giant BSkyB is mulling a €2.5bn bid for Spanish pay TV platform Digital+, a report said today.
Sky is said to be looking at the group, owned by Prisa, as it seeks to build its presence in continental Europe, according to the Financial Times.
A deal to buy Digital+ would mark BSkyB’s first move outside of the UK and Ireland for more than eight years.
The firm’s last foray overseas ended with a £985m (€1.2bn) write-down.
BSkyB took the hit on a minority 22% stake bought in 1999 in German subscriber television service KirchPayTV, which collapsed when its parent company went into liquidation.
BSkyB declined to comment today, but the FT reports that the group is looking at tabling a bid for Digital+ when owner Prisa kicks off an anticipated auction.
Prisa is reportedly putting Digital+ up for sale in early autumn to repay debts.
It is also reported that Rupert Murdoch’s News Corp media conglomerate, which owns a 39.1% stake in Sky, had been eyeing Digital+.
Sky is not believed to have concrete plans to make an offer, although it is understood to have financing in place for acquisitions.
BSkyB chairman James Murdoch has been tasked with leading his father’s media interests in Europe and Asia in his dual role as chief executive of News Corp Europe and Asia, which he was promoted to last December.
But Sky could face competition from other potential bidders for Digital+, such as France Telecom’s Orange, Vivendi and Telefonica.
Shares in Sky were nearly 2% lower today, with analysts raising doubts over a bid from Sky and concerns that there would be little cost-saving opportunities in a tie-up.
Sky reported customer numbers of 8.9 million at the end of March, but said operating profits for the nine months to March 31 were down £36m (€45.5m) to £521m (€658m) as it forked out on investments in broadband and telephony, as well as the additional cost of its new Premier League football contract.
