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The Markets
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The Markets
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Media

News Corp buys TalkSport owner for £220mln

The media giant, which was strongly in favour of Brexit, says the deal is a vote of confidence in the UK as "a place to do business successfully and profitably"

News Corp, via The Times and The Sun newspapers, came out strongly in support of Brexit before the referendum.

“The proposed investment is a clear sign of our commitment to, and belief in, the United Kingdom as a place to do business successfully and profitably,” said News Corp chief executive Robert Thomson.

“With its strength in radio, as well as its digital and international growth potential, Wireless will help improve the engagement of our publishing brands, especially those within News UK.”

Wireless shareholders will receive 315p in cash for each share held, a 70% premium on yesterday’s closing price of 185p.

“This is an excellent outcome for all Wireless stakeholders,” said Richard Huntingford, executive chairman of Wireless Group.

“Shareholders receive an immediate and certain cash value for their shares which not only represents a very significant premium to the current share price, but also fully recognises the long-term prospects and growth potential of Wireless.”

Kelvin MacKenzie, former editor and current columnist at The Sun, founded the radio business back in 1998, before he sold it to broadcaster UTV in 2005 for £98mln.

UTV Media sold its television channels last year to ITV for £100mln, with the deal effectively putting the rest of its portfolio, including Wireless, up for sale.

It is thought that ESPN and Sports Direct had looked at the business in the past.

Shares in Wireless were up 124.5p, or 67%, to 309.75p.

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