Rupert Murdoch’s News Corp. has reached a deal to buy Shine Group, the U.K.-based television production company founded by the business magnate’s daughter Elisabeth, in a deal that values it at 415 million pounds (US$673.3 million) including debt.
The all-cash transaction will bring Murdoch’s eldest daughter, at age 42, back under the News Corp. umbrella 11 years after she left as former managing director of Sky Networks.
Her return comes amid speculation about who will succeed her 79-year-old father as head of the company. Elisabeth’s brother James, 38, is considered to be the front runner to take over the media empire. He oversees a much larger portfolio, as chief executive of Europe and Asia.
Rupert Murdoch, News Corp.’s chief executive, controls the company through a family trust that holds 40% of the Class B voting shares.
Both siblings will report to Chase Carey, News Corp.’s deputy chairman, president and chief operating officer.
Elisabeth Murdoch is also expected to join the 15-member board along with James and her other brother, Lachlan, 39, who has no management role. Rupert Murdoch has two younger daughters, aged 9 and 7, with wife Wendi Deng.
“I could not be happier or more proud that from such modest beginnings Shine will join such an extraordinary group of companies,” Elisabeth Murdoch said in a statement.
The company said Monday it signed a non-binding letter of intent and will proceed with the necessary regulatory filings to acquire Shine, the producer of popular British shows like MasterChef and Merlin.
In a joint statement, Rupert Murdoch praised Shine’s “outstanding creative team.”
Elisabeth Murdoch left News Corp. in 2000 to start Shine and said the alliance will help prepare her company for future growth. Her job will be to continue to run Shine as its chief executive.
News Corp. is one of the world’s largest media empires, and owns the Times and Sun newspapers in Britain, the Fox News Channel and the Wall Street Journal.
News Corp. and Shine said they will continue to negotiate the final terms of the agreement, which will be subject to approval from both companies’ boards, the audit committee and the receipt of an independent fairness opinion. The companies did not say when they expect the deal to be completed; they also didn’t break out the amount of debt involved in the deal.
