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U.K. quad-play provider agrees 10.75 per share price with biggest single shareholder, but deal is not done and dusted.
Sky shares surged on Friday after U.S. media giant 21st Century Fox launched an £11.25 billion (€13.43 billion) takeover bid for the company.
In a statement, Sky said the two companies have agreed an offer price of £10.75 per share, valuing the company at £18.5 billion.
"Certain material offer terms remain under discussion and there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer," Sky said.
The offer represents a 36% premium on Sky’s closing share price on 8 December, and a 40% premium on its 6 December share price, the last business day prior to Sky receiving Fox’s offer.
Sky’s shares soared almost 32% on Friday’s annoncement.
21st Century Fox is Sky’s biggest single shareholder, with a stake of 39.14%. To acquire the rest of Sky at the agreed price, Fox will need to pay £11.25 billion.
Sky has formed an independent board committee to evaluate the offer; Fox has until the close of play on Friday 6 January to confirm whether or not it will proceed with an offer.
This the second time attempt by Rupert Murdoch to acquire Sky.
The media mogul’s former company, News Corp, in 2010 launched a £12 billion bid for the outstanding 60.9% stake in Sky – then called BSkyB – that it didn’t already own.
However, the bid was abandoned in 2011 in the face of widespread opposition after it emerged that reporters at News Corp-owned tabloid, the News of the World, had hacked into voicemails and bribed police in the pursuit of stories.
The scandal forced News Corp to split in two, with 21st Century Fox taking ownership of the companies media assets, including its 39.1% stake in Sky, and a new News Corp taking control of the publishing businesses.
Despite the failed takeover, fresh rumours that Fox would renew its efforts to acquire Sky were sparked when Fox CEO James Murdoch was named chairman of Sky in January this year.
