Shares of the publicly traded

News Corp.

(NWS) - Get Report

subsidiary

Fox Entertainment

(FOX) - Get Report

rallied Monday after the parent announced plans to acquire Fox shares it doesn't already own.

News, which owns 82% of Fox, will exchange 1.9 of its Class A shares for each Fox share tendered into the offer. News closed Friday at $18.23, giving the offer a value of $34.64. Fox closed Friday at $31.22 and the shares rose $2.78, or 8.9%, to $34 in premarket trading Monday.

The transaction has an overall value of about $7 billion.

The Fox unit comprises Fox Broadcast, Fox News and the 20th Century Fox movie studio. News Corp.'s decision to bring in the shares had been rumored since the company switched its official corporate home to the U.S. from Australia.