In 2014, BskyB made a significant acquisition in the European market. BskyB spent £5 billion to acquire Sky Europe, a move that expanded its presence in the region.
This deal was a major coup for the company, allowing it to tap into new markets and increase its subscriber base.
£5bn Sky Europe Deal
BSkyB is paying £4.9bn to take over Rupert Murdoch's pay TV companies in Germany and Italy.
The deal will create a new company called Sky Europe, which will have 20 million customers.
BSkyB's chief executive, Jeremy Darroch, believes the three Sky businesses will be stronger together, with the ability to use their collective strengths and expertise to serve customers better and grow faster.
Part of BSkyB is owned by Rupert Murdoch's 21st Century Fox, which owns 100% of Sky Italia and 57% of Sky Germany.
BSkyB shares were down 5% on the news, due to the higher debt levels and the end of share buybacks that the deal will bring.
A unique perspective: S a Spurs News
Share Price and News Corp
Shares in BSkyB fell by more than 2% on news of the potential merger with News Corp.
The bid by News Corp was withdrawn in 2011 due to a scandal over phone hacking at the company's UK newspaper group.
James Murdoch, who was BSkyB's chief executive at the time, has previously stated that the company needs to "resolve" its European pay-TV strategy.
Having three separate firms is "not optimal", according to James Murdoch.
James Murdoch now holds an executive position at 21st Century Fox.
The exposure to Sky Italia is a concern for investors, due to the weakness of the pay-TV market in the country.
The consumption power of the average Italian household is about the same as it was in 2000.
Here's an interesting read: Rupert Murdoch
Murdoch and the Takeover
Rupert Murdoch's plan to take over BSkyB is a significant move that could change the British media landscape.
Murdoch's News Corporation already owns 39.1% of BSkyB, but this takeover would give him control of the remaining 61%.
The proposed £8bn purchase would make Murdoch even more powerful in the UK.
A confidential report by media analyst Claire Enders warned that the takeover could lead to a decline in media plurality.
The report suggested that News Corporation's influence over BSkyB could result in a loss of independent editorial coverage.
News Corporation would license the Sky News brand to a new publicly listed company, but this would still allow the company to have significant control over the news channel.
James Murdoch, who used to be BSkyB's chief executive, has said that having three separate firms is "not optimal".
Intriguing read: U.S. News & World Report
Frequently Asked Questions
Does BSkyB still exist?
No, BSkyB is no longer the official name of the company, which is now known as Sky UK Limited. The name change occurred as the company evolved to expand its services beyond broadcasting.
Why is Sky called BSkyB?
Sky is called BSkyB because it was formed through a 50:50 merger between two companies in 1990, with the public name "Sky" hinting at the new service's reality. The merger bypassed regulatory approval, putting the DBS license at risk.
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