News Corp. Ups Sky Deutschland Stake

LONDON/NEW YORK: News Corporation is increasing its stake in Sky Deutschland from 39.96 percent to 45.4 percent via a new share issue.

The company announced today that it has agreed to subscribe to up to 49 million new registered shares in Sky Deutschland via a capital increase that is expected to raise between 110 million euros and 120 million euros. The capital increase is expected to occur in January 2010. The funds will be used for sales and marketing efforts to drive subscriptions, upgrading Sky’s HD capacity—including the launch of four new channels in 2010—and investing in programming.

Outgoing CEO Mark Williams noted: "From all we have seen, I am confident that this is the right time to invest in the future growth of this company. I am pleased that News Corporation supports this view. The positive reaction that consumers have had to the new Sky service demonstrates that Germans and Austrians value the greater choice, quality and innovation that our new pay-TV service offers. More than 350,000 new customers have decided to subscribe to the service since launch. We are excited about the new products and programming that we have coming down the line and believe that customers have much more to look forward to in 2010.”