News Corp. to Buy BSkyB

News Corp. to Buy BSkyBNews Corp. is moving ahead to grab 61% stake in U. K. based company, British Sky Broadcasting Group PLC. This could be the biggest deal of the year according to some who are familiar with the buyout.

However the terms and conditions at both ends are yet to be finalized and agreed upon, as BskyB has a market cap of approximately £10.5 billion. Considering the regulatory hurdles, both the groups would like to take government approval before coming conclusion on acquisition price.

However, buying the broadcasting group would only depict the deep dive for the News Corp. into the subscription TV business and a wealthier bet for the group on News Corp.'s success stories. The deal shall soon be made public with the seal of announcement on it.

If everything moves smoothly, the deal will figure the answer for the question of News Corp. Investors, that how the media company shall use its $8.2 billion cash piled up.

Moving ahead, BSkyB is already under the lime light in U. K. The British broadcasting regulator expressed that BSkyB must sell at a much lesser price as the rivals gets the access to popular programming, including English soccer matches, which is an effort to bring the competition at an enthusiastic level in the subscription-TV market.