BSkyB eyes Murdoch’s pay-TV assets in Italy, Germany

BSkyB’s plan to buy Rupert Murdoch’s pay-TV assets in Italy and Germany for up to €10bn is a bold bet on long-term growth at the expense of short-term profit, but the pioneering British media firm has pulled off such gambles before.

Facing the toughest market conditions in its 25-year history, BSkyB has opened talks with Murdoch’s 21st Century Fox to acquire Sky Deutschland and Sky Italia to create a European powerhouse with 20m subscribers.

BSkyB, also 39%-owned by the Australian-born media mogul, has set the standard in Britain for technological innovation such as its award-winning Sky+ set-top box, streaming TV app, and Europe’s first 3D channel.