Murdoch’s $14B Plan to Dominate Satellite TV

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May 12 (Bloomberg) -- Bloomberg’s Hans Nichols and Ruth David report on 21st Century Fox Chairman Rupert Murdoch’s plan to consolidate control of his Sky Deutschland AG and Sky Italia satellite-TV units under the British Sky Broadcasting Group service. They speak on Bloomberg Television’s “The Pulse.”

Sitting right next to you, it is to take 20th century fox, one of the two companies that murdoch now has, and to have it, through his control of b-sky-b, take full ownership of sky d eutscheland and sky italia.

It has a 100% stake, fox controls this aspect of it, fox has that stake.

You combine them together and what you would really bring is a unified, pan-european company that can negotiate on sports, advertising, and it can combine all of those subscribers.

You see growth in sky deut scheland.

Sky italia is a bit stagnant.

I know all you are interested in is can you watch more of your bundesliga this way.

I suspect you will be able to watch more of it.

Give us a feeling of what is at stake here and how much is this going to be helping murdoch pitt himself against the juggernaut that is john malone?

This is a battle that we have seen play out in the past decade.

Dortch land -- deutschland, europe is a place where malone has spent money, expanding across europe.

If they are able to consolidate all of murdoch holdings, it would make them a much stronger company and it is great for when they are looking to get subscription rights for the packages and advertising.

If the merger goes through, b-sky-b would have around 23 million subscribers, which is more than they have right now.

When it comes to bidding for rights, which is ultimately what it is all about when you own these european paid tv channels, it gives it scale, which is a very important factor.

We saw b-sky-b shares go down since last october.

Right now, if they get this access, it would make them much stronger when they are going up for these kinds of deals.

What will this leave fox doing?

It is them focusing far more on the production of content rather than his tribute and.

Will that make it a more attractive asset going forward?

Exactly.

If you are an investor who says i just want a pure play company that looks at production, this would help fox streamlined its assets and have all of the content going to b-sky-b and that makes it much more appealing for europe.

This has been in the cards for a number of years, hasn't it?

There is no guarantee it will be successful.

There are a couple of regulatory hurdles to clear.

Regulatory hurdles in germany.

If you do have a sort of a unified pan-european network, there is still the question of can murdoch take his 39% stake of fox news and take full control?

Why would he combine these companies if he is ultimately not to control them?

There are a couple of theories.

One is that he wants to have an asset that is totally separate from fox creek 20th century fox is the immediate company.

You have the distribution company based in europe and that could be sold potentially to a vodafone or a mobile player that wants to have more internet connection, or broadband connections, more tv connections.

You can see companies that are more focused.

You have a media-focused out the in the states, 20th century fox.

Then you have whoever owns b-sky-b and the german and italian components be more about distribution.

It would be more streamlined, better for advertising.

That is one theory.

All of this defense -- depends on the regulators.

There is a big asterisk with all of these m&a deals.

Will regulators let them go through?

Thank you very much.

Let's turn to the price -- the crisis in the ukraine now.

This text has been automatically generated. It may not be 100% accurate.

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