News Corp has confirmed that is to increase its stake in German pay-TV provider Sky Deutschland from 39.96% to 45.42% via a new Sky Deutschland share issue.
News Corp will invest 110m in Sky Deutschland, which will use the additional investment to strengthen its marketing and sales activities, including direct marketing to subscribers, and to expand its HD offer. The pay-TV provider plans to add four new HD channels to its line-up by mid-2010.
News Corp will receive 49,014,714 new Sky Deutschland shares at a price of Â2.25 each.
Sky Deutschland expects EBITDA for 2010 to be in the range of a loss of Â130m to Â170m. The company expects the additional investments in 2010 will result in EBITDA and operating cash-flow breakeven on a monthly basis in 2011 at a subscriber level of between 2.8 million and three million.