Rupert Murdoch’s 21st Century Fox (NASDAQ: FOXA) has announced plans to sell its 39 percent stake in Sky (LON: SKY).
After Comcast (NASDAQ: CMCSA) won the bidding war for Sky in a £30 billion deal on Saturday, it was unclear if Fox would retain its shares in the broadcaster.
Fox will accept Comcast’s £17.28 a share offer, valuing the Sky stake at £11.6 billion.
21st Century Fox said in a statement: “When we launched Sky in 1989 it was four channels produced from a prefab structure in an industrial park on the fringes of west London.”
“We bet – and almost lost – the farm on launching a business that many didn’t think was such a good idea. Today, Sky is Europe’s leading entertainment company and a world-class example of a customer-driven enterprise.”
“This achievement would not have been possible without decades of entrepreneurial risk-taking and the commitment of thousands of colleagues, creators and dreamers. For nearly 30 years we have invested to create a dynamic and exciting business that has produced excellent returns for shareholders and has become one of the most admired companies in Europe.”
Sky’s Chief Executive Jeremy Darroch said: “Nearly 30 years ago Rupert Murdoch took a risk to launch Sky and in the process changed the way we watch television forever.”
“With [21st Century Fox] announcing its intention to sell its shares to Comcast, we close one chapter while simultaneously opening another.”
James Murdoch, who is the current chairman for Sky, is likely to leave the company when the deal is finalised.
Comcast controls various US news and media businesses including NBC and Universal Studios.
Shares in Fox are trading up 1,26 percent at 45,78 (1735GMT).