Murdoch To Generate $13.5 Billion From BSkyB Stake for the Time Warner Inc (TWX) Deal


Rupert Murdoch and his family is looking to sell some of the stake in BSkyB to generate more money to up the deal for Time Warner Inc (NYSE:TWX). Murdoch’s family owns 39% stake in Twenty-First Century Fox Inc (NASDAQ:FOXA) and they are looking to rearrange the assets to generate the money to up the deal.

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Caroline Hyde of Bloomberg was reporting on how the cash is being generated for the deal with Time Warner Inc (NYSE:TWX). She said that BSkyB might take 57% stake in Sky Deutschland and entire Sky Italia from Murdoch’s hands which would be around 10 million Euros. She thinks that it should give Murdoch enough money to up the offer to Time Warner Inc (NYSE:TWX).

Hyde said that Time Warner Inc (NYSE:TWX) rejected Rupert Murdoch’s bid of $75 billion and he has been trying to raise money from every possible to source to bid. She said that he doesn’t want to borrow anymore and that is why he is selling the stake in BSkyB for about 10 billion Euros ( $13.5 billion).

“We know Time Warner said no, look $75 billion isn’t quite enough; but he is lining up suddenly, debt financing. He has got Goldman Sachs; He has got J.P. Morgan on board to give him the money that he needs there.” Caroline Hyde stated on Murdoch’s sources for generating money.

She said that it would be interesting to look what investors want from the deal and she thinks that Murdoch is focusing on production side by acquiring Time Warner Inc (NYSE:TWX) and sell the programs and movies to distributors and hence the selling off a distributor such as BSkyB would just let him focus completely on production side.

She thinks that this selloff would give both parties more control on what they want. Murdoch can get more control in production side while BSkyB can actually focus on getting the football coverage deals, winning original content.

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