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Sky: The Creation Of A Pan-European Media Company

Sky (OTCQX:SKYAY) (OTCPK:BSYBF) is a UK-based television media company that operates both a satellite-based television distribution system as well as operating as a content provider itself. The combination of being both content provider and signal distributor is a pretty interesting one and Sky has been pretty successful with it. Its distribution business provides television service, telephony and internet access in the UK and Ireland and is similar to the business of US satellite TV-providers such as DirecTV (NASDAQ:DTV) and Dish Networks (NASDAQ:DISH). Its content arm consists of owned television channels such as Sky News, Sky Sports, Sky Arts and Sky Atlantic which are distributed both through its own distribution business as well as through third-party operators. The company was until recently known as British Sky Broadcasting or BSkyB and was created through the merger of Sky Television and British Sky Broadcasting in 1990. In a 2014 deal with its largest stake-holder 21st Century Fox (NASDAQ:FOX) the company divested its interests in both National Geographic Channel and ITV and bought Sky Italia and a majority interest Sky Deutschland from Fox at the same time. This move has it form largely a UK operator into a large Pan-European media network. The business combination will be substantially larger than BSKYB was before and it has prompted me to take a look at the potential for capital gains in its…