21st Century Fox reached an agreement to pay $14 billion for the stake in European satellite TV operator Sky PLC that it doesn't already own, Sky TV announced.
The cash offer values Sky shares at 1075p each - less the value of any dividends paid subsequently by Sky - putting a valuation on the company of £18.48bn. Fox advanced 3.7 per cent to $29.69 at 11:15 am in NY after rising as much as 6.2 per cent.
Rupert Murdoch may get all of European broadcaster Sky after all after the United Kingdom phone-hacking scandal scotched a previous effort.
Sky has 22 million customers across five European markets: Italy, Germany, Austria, the United Kingdom and Ireland.
The London-listed firm said in a statement it had agreed on an informal offer of £10.75 (A$18.18) per share from the Murdoch-controlled U.S. media-entertainment giant, which is seeking to take full control.
However, this was thwarted by political opposition amid the phone hacking scandal at its British newspapers, leading to the closure of News of the World.
The deal is likely to ignite a huge amount of debate in the United Kingdom media industry. That is a 35% premium to Thursday's closing price, and 19 times.
Rupert Murdoch is now the co-executive chairman of 21st Century Fox, a position he shares with his other son, Lachlan.
That deal attracted a good deal of scrutiny because it would have brought together Sky News with News Corporation's United Kingdom media assets, including The Sun, Britain's biggest-selling daily newspaper, The Times, The Sunday Times and the News of the World. Stock of 21st Century Fox dipped almost 1 percent to $28.38 in midday trading.
There has always been speculation that another takeover deal was coming from 21st Century Fox.
He added: "As you know, 21st Century Fox were the founders of our business and have always been an extremely supportive shareholder and backer of Sky". British tech company ARM was snapped up by Japan's SoftBank in the days after the Brexit vote and shares in United Kingdom commercial broadcaster ITV closed up 5 per cent on Friday on speculation it could be next.