UPDATE 2-News Corp bolsters Sky Deutschland again, shares up

* Sky Deutschland to sell as many as 49 million shares

* News Corp's stake to rise to as much as 45 pct

* Sky Deutschland shares soar 11 pct, News Corp up 3.5 pct

(Adds CEO comments, background, updates shares)

FRANKFURT, Dec 21 (Reuters) - Rupert Murdoch's News Corp (NWSA.O) will spend up to 120 million euros ($172 million) to raise its stake in Sky Deutschland SKYDn.De, its second investment in the company this year, sending the German pay television broadcaster's shares soaring.

News Corp will raise its stake in the company, previously called "Premiere," reaching as much as 45.4 percent from below 40 percent, it said on Monday.

News Corp will buy new shares in the German TV station, helping the company to invest in marketing to win over a reluctant German audience, which has already cost it millions of euros in its quest to win subscribers.

Sky Deutschland's shares closed up 10.6 percent at 2.08 euros, while the German midcap index MDAX .MDAXI nudged up 0.8 percent and the DJ Stoxx European Media Index .SXMP rose 1.8 percent. News Corp's stock advanced 3.5 percent.

News Corp is investing in Sky even as many media companies suffer from falling ad revenue because of the recession and as more people seek news and entertainment on the Internet.

Still, Murdoch has said that News Corp is in good health, and has billions of dollars in cash. Murdoch, News Corp's chief executive, said he expects 2010 to be a stable year.

News Corp will help the German broadcaster, which aims to spend more money on advertising and new channels after it said it would fail to reach its target of at least 2.8 million subscribers this year by some 10 percent.

"This is the right time to invest in the future growth of this company," outgoing Chief Executive Mark Williams said.

Sky will not earn money for its shareholders for at least two years. Earnings before interest, taxes, depreciation and amortization (EBITDA) will be positive in 2011, but it will generate a net loss that year, Williams said.

The company, which shows sports, movies, documentaries, drama series such as 'Lost' and pornography, had earlier aimed to break even on an EBITDA basis by the end of 2010 and be profitable from 2011.

It will issue as many as 49 million shares and sell them to News Corp, after raising 412 million euros at the beginning of the year.

Sky Deutschland this month also announced its Chief Executive Mark Williams would step down at the end of March 2010, marking the loss of its third chief in four years and driving down shares to a more than six-month low. [ID:nGEE5B2115] (Reporting by Peter Dinkloh and Christoph Steitz. Editing by Robert MacMillan)