The long-rumoured takeover of SKY News by News Corp is now a reality with The Australian reporting
a formal takeover of parent company Australian News Channel.
The deal for the company, which has one third ownership by Seven West Media, Nine Entertainment Company and SKY (UK), is rumoured to be worth $20 million.
News Corp will take control of channels SKY News Live, SKY News Business, SKY News Weather, SKY News Multiview, Australia’s Public Affairs Channel A-PAC, SKY News New Zealand and Australia Channel.
News Corp executive chairman Michael Miller told staff in an email today, “This is a significant investment that reinforces News Corp Australia’s continued commitment to quality journalism, talent and content.
“I’m excited by the prospects offered by this acquisition and to lead a company that is investing in the best news coverage for all Australians.
“This acquisition has come about because News Corp Australia recognises the increasing value of SKY News; its employees, the shows they host and the audience it attracts.
“Together, we will ensure the strengths and benefits of each company are leveraged fully in the long term.”
Australian News Channel chief executive officer Angelos Frangopoulos described it as a “tremendous opportunity to grow and develop talent, content and commercial revenues”.
“Today marks an exciting new chapter in the 20-year history of Australian News Channel,” he said.
“We are now within a global business forged by quality journalism and I can’t think of a better partner to invest and grow SKY News. The industry is rapidly changing and today’s announcement goes beyond securing the future of this company — it means it will be playing a significant role.”
The move means significant video resources for News Corp online. Content from Nine, Seven and SKY will continue to be supplied.
Foxtel’s carriage agreement with SKY currently ends in February 2017.