BSkyB considers €2.5bn Digital Plus-FT bid

Source: Technology Digital

Date :04/07/2008 12:14:01

The British pay-TV firm is expected to line up an offer of €2.5 billion ($4 billion) for Spain’s Digital Plus-FT.

BSkyB faces strong competition from a number of Spanish groups in the race for Digital Plus-FT. But this would be BSkyB’s first move outside the UK and Ireland since a failed venture into Germany in 2000.

The auction for Digital Plus-FT is set to take place later this year with a deal looking to cost upwards of €2.5 billion. BSkyB’s ability to fund a bid remains uncertain as it has net debt of £1.91 billion.

The move would increase BSkyB and parent News Corp’s grip on football broadcast. But this might be complicated by an ongoing dispute over Digital Plus-FT’s rights to La Liga.

In 2000 BSkyB bought a stake in Germany’s Kirch Media, but had to write off £1 billion on the investment two years later.