Murdoch eyes Sky Italia buyout
News Corp. already holds 80.1% in co.
News Corp. already holds 80.1% in Sky Italia, Italy's only pay TV venture, and has operational management.
According to Italian sources, talks should reach a positive conclusion in the next few weeks. Telecom Italia's stake has a book price of e57 million ($69.5 million), and sources expect Murdoch to pay around that figure.
Neither side has commented.
Antitrust watchdogs are not expected to intervene in the deal. The European Commission cleared Murdoch's monopoly implicitly when it approved News Corp.'s acquisition of Vivendi Universal's Italo paybox Telepiu in 2003 and its merger with Murdoch's Italo paybox Stream to create Sky Italia.
Sky Italia, which has 2.7 million subs, expects to reach 3 million subs by the end of this year and financial break-even within 18 months.
Telecom Italia has always considered its stake in Sky Italia just a financial investment, while it has expressed several times recently its intention to expand its strategic terrestrial TV holding, La7.
La7 will soon launch feevee digital terrestrial services and is discussing the acquisition of digital terrestrial TV rights to some soccer matches, which will put it in competition with Murdoch, as Sky Italia has a near monopoly of the most popular sport in Italy.
