Broadcaster Sky has become the subject of a potential takeover swoop from US media giant 21st Century Fox.

Shares in the Game of Thrones broadcaster have rocketed 30% on the news, with the two firms reaching an agreement on an offer price of £10.75 per share.

However, the FTSE 100 firm said the terms of the deal are under discussion and there is no certainty that an official offer will be made.

21st Century Fox, a major shareholder in Sky, has tabled a proposed offer representing a 40% premium of Sky's share price of 759.4p on Tuesday.

Sky said it has formed an independent committee to consider the proposal as it looks to protect the interest of shareholders.

The firm announced in October that sales rose 5% in the first quarter, driven by growth in Germany and Austria.

UK revenues grew 5% to £2.1 billion and group sales were up 7% to £3.1 billion on a constant currency basis.

Sterling's 16% plunge against the US dollar in the wake of the Brexit vote has made UK firms prime takeover targets for international companies.

Major deals already announced include the Odeon & UCI cinema chain sale by Guy Hands's private equity vehicle Terra Firma to US firm AMC Entertainment for £921 million in July.

It was quickly followed by SoftBank's £24 billion tie-up with ARM Holdings, marking the biggest investment from Asia into the UK.