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Rupert Murdoch's media empire 21st Century Fox has struck a mega deal with British satellite television group BSkyB to create a pan-European pay-TV giant, the two companies announced on Friday. BSkyB, 39-percent-owned by 21st Century Fox, said it had agreed to buy Fox's 100-percent stake in Sky Italia and its 57.4-percent interest in Sky Deutschland. The new project, named "Sky Europe" by observers, is seen as a bid by media mogul Murdoch to strengthen his European television operations as the telecommunications sector enters the market to screen live football matches featuring some the world's biggest clubs. Analysts said the deal would give 21st Century Fox an opportunity also to make a renewed bid for rival Time Warner.