British broadcaster BSkyB has confirmed that is in discussions to acquire stakes in Sky Italia and Sky Deutschland from 21st Century Fox.
It is a clear sign that News Corp boss Rupert Murdoch is keen to merge his European television assets.
The Murdoch family is the largest shareholder in 21st Century Fox, which is in turn the main shareholder in BSkyB.
The potential deal would create a pan-European conglomerate, which analysts said could help Sky better compete with the rising threat of streaming video services, such as Netflix.
BSkyB’s shares fell on the news of a possible merger.
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