News Corp. not Ready to Go beyond £7.8billion for British Sky Broadcasting

Even after having been turned down by British Sky Broadcasting’s independent board, News Corp. is not ready to increase its offer to get a 61% stake in Sky.

Analysts and bankers too believe that News Corp. should raise its £7.8bn ($12.4bn) bid, however, Deputy Chairman of the media group, Chase Carey said, “We have made a full and fair offer. We’ve been willing to sit with our current investment for many years and we have other options for our cash”.

Before settling on a price for the projected buyout, the two parties have decided to seek approval from the European and British regulators. It is reported that in mid-June, BSkyB’s independent Directors had asked News Corp. to add another £1bn in their offer.

If this buyout takes place, it would add to the portfolio of James Murdoch, who is the Chief Executive of News Corp. for Europe and Asia. He is the eldest son of Rupert Murdoch, Chairman and Chief Executive of News Corp.

Apart from getting a green flag from the regulators, News Corp. also intends to refurbish its social networking website MySpace.

The group returned to profits, thanks to Fox News, which was responsible for the threefold increase in revenues. Carey deems that with the help of international channels, they would be able to twofold their income.