Thomson Reuters
Rupert Murdoch.
21st Century Fox already owns 39% of Sky and Murdoch has long coveted a full takeover. His previous, £8 billion attempt, was derailed by the phone hacking scandal in 2011.
Sky announced the takeover approach in a stock exchange update on Friday afternoon. The statement said Sky and Fox's independent directors had "reached agreement on an offer price" of £10.75 a share.
It added: "Certain material offer terms remain under discussion and there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer."
The offer represents a 40% premium on Sky's closing share price of £7.69 on 6 December, Sky said. This was the day before Fox made its approach. Sky said its independent directors would be happy to recommend Fox's offer to shareholders after terms have been agreed. Sky's shares rocketed 26.66% to £10 on Friday.
More follows.