Sky has agreed to be taken over by 21st Century Fox, a company also owned by Rupert Murdoch. The £18 billion deal was on an offer price of £10.75 per share.
The deal will see Fox snap up the 61 per cent of Sky that it doesn't already own.
Sky's shares jumped 26.7 per cent immediately following the announcement.
It's early days yet, so we don't know the full ramifications of the deal, and whether it'll affect Sky's TV products and services.
Sky said in a statement: "The independent directors of Sky note today's share price increase, and announce that Sky has received an approach from 21st Century Fox.
"After a period of negotiation, the Independent Directors of Sky and 21st Century Fox have reached agreement on an offer price of £10.75 a share in cash, less the value of any dividends subsequently paid by Sky.
"However, 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."
Sky was founded in 1989, but merged with satellite company BSB a year later. Since then, Murdoch has never owned a majority stake in Sky.
He last tried to buy the rest of the company in 2010 through News Corp, but was forced to withdraw following public outcry at the phone hacking scandal at another Murdoch company, News International.