BSkyB Turns Down $11.5 Billion News Corp. (NWS) Buyout

News Corporation (NASDAQ: NWS) announced on Tuesday that its 7.8 billion pound ($11.5 billion) bid to buy the remaining 61% of British Sky Broadcasting (BSkyB) that it doesn't already own was rejected by the British broadcaster and satellite television provider.

British Sky Broadcasting said that the takeover bid from News Corporation (NWS) undervalued the company but that its board of directors would support a higher bid of at least 8.9 billion pounds.

The talks between the two closely linked companies will continue. James Murdoch is the Chairman and CEO of News Corporation Europe and Asia, as well as the chairman of BSkyB.

Although the two companies have yet to agree to a price, they are continuing with their joint efforts to get a possible deal approved by regulators.

Shares of BSkyB surged more than 20% when the news was released.

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