News Corp expected to move swiftly on BSkyB deal

Following culture secretary Jeremy Hunt’s decision to approve the proposed takeover of pay TV operator BSkyB by News Corp subject to a further week-long consultation period, News Corp has said it will “continue to engage constructively with the regulatory process”.

It is widely believed that News Corp will now move swiftly to secure a deal, with some reports suggesting the companies could secure an agreement ahead of the broadcaster’s full-year results announcement on July 29.

Under the terms of an agreement struck between News Corp and Sky last year, a deal with independent investors should be struck within two months of Hunt’s final approval. If that fails to happen, News Corp would require agreement of 70% of Sky’s shareholders for any deal to be completed for three months, after which it will pay a £38.5 million (€42.7 million) fee to the broadcaster and the threshold for agreement would come down to 50.1% of the company’s shareholders.