Rupert Murdoch's Twenty-First Century Fox Inc (FOXA.O) has proposed buying the 61 percent of British pay-TV firm Sky Plc SKY.L it does not already own for around $14 billion, five years after a political scandal scuppered a previous bid.
In a stock market announcement, the two firms said they had reached an agreement on a cash offer of £10.75 per share, but stressed that there was no certainty that a deal would be struck.
21st Century Fox, which owns 39% of Sky, said the offer represented a 40% premium of Sky's share price on Tuesday.
According to Reuters calculations, Fox will pay STG11.25 billion for what it doesn't already own of Sky.
The media mogul's son, James Murdoch, was named chairman of Sky this year, fueling speculation that Fox would make a bid.
Sky, which has formed an independent committee to consider terms of the proposal, said discussions were ongoing. Pound was down about 14 percent against the USA dollar post Brexit. Fox has until January 6 to say whether it will make a firm offer.
People familiar with the matter said the Murdochs had pounced after Britain's vote to leave the European Union in June has sent the pound down about 14 percent against the USA dollar and Sky's share price tumbling.
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Alex DeGroote, analyst at Peel Hunt, said it was "not quite a done deal", but he would be surprised if it did not go ahead. "Sky has not performed well in the United Kingdom stock market this year, and is seen as a Brexit loser", he told the BBC.
Sky is a paid-television and internet-service provider.
There has always been speculation that another takeover deal was coming from 21st Century Fox.
Recently, the Murdoch family has shown renewed interest in Sky.
"The way Theresa May's government deals with this is a test of their independence from the influence of large proprietors".
News Corp's bid faced opposition from rivals in the media industry and some politicians before it was scuppered by acute pressure on the company brought about by phone-hacking claims.
In July 2014 BSkyB, as it was then known, paid nearly £5bn to take over Rupert Murdoch's pay TV companies in Germany and Italy.