Basil
Contributor
- Joined
- 6 Oct 2013
- Messages
- 7,279
- Reaction score
- 15,705
Tata group has begun discussions to sell an additional stake in Tata Sky, its direct-to-home (DTH) television arm, to joint venture partner Twenty-First Century Fox Inc., said two people aware of the development.
The media and entertainment company controlled by billionaire Rupert Murdoch owns a close to 30% stake in Tata Sky through its investment arm Network Digital Distribution Services FZ Llc (NDDS) and is keen to increase it, the people cited above said on condition of anonymity.
“Fox is looking to consolidate its position and control in several markets and has made repeated attempts to take over BSkyB, a television and broadband services provider in the UK,” one of the two said.
But the people cited above said a precedent exists for such a deal, given that NDDS already has a stake of around 30% in Tata Sky, and the two sides will approach the government for approval if the ongoing discussions are successful.
An email sent to Fox remained unanswered as of press time. A Tata Sons spokesperson said: “We do not comment on speculation.
“DTH is a cash-intensive business and the industry is very dynamic and that’s possibly one reason why Tatas may want to reduce their stake or exit altogether,”said the second person cited above.
Tata group in talks with 21st Century Fox to sell Tata Sky stake
The media and entertainment company controlled by billionaire Rupert Murdoch owns a close to 30% stake in Tata Sky through its investment arm Network Digital Distribution Services FZ Llc (NDDS) and is keen to increase it, the people cited above said on condition of anonymity.
“Fox is looking to consolidate its position and control in several markets and has made repeated attempts to take over BSkyB, a television and broadband services provider in the UK,” one of the two said.
But the people cited above said a precedent exists for such a deal, given that NDDS already has a stake of around 30% in Tata Sky, and the two sides will approach the government for approval if the ongoing discussions are successful.
An email sent to Fox remained unanswered as of press time. A Tata Sons spokesperson said: “We do not comment on speculation.
“DTH is a cash-intensive business and the industry is very dynamic and that’s possibly one reason why Tatas may want to reduce their stake or exit altogether,”said the second person cited above.
Tata group in talks with 21st Century Fox to sell Tata Sky stake
