UPDATED: Why News' sell-off is good for Sky TV

Expect Sky Television shares to drop following a discounted sale by major shareholder News Limited, an analyst says.

However, Hamilton Hindin Greene director Grant Williamson says the share price has headroom to move once the sale washes through.

Sky TV's biggest shareholder, Rupert Murdoch's News Limited, confirmed this morning it is selling its 44% stake, for $815.3 million.

The $4.80 sale price was confirmed to the NZX this afternoon in a substantial shareholder notice.