BskyB told to sell stake in ITV
Updated on 02 October 2007
The competition watchdog rules that BSkyB's 19% stake in ITV 'operates against the public interest'.
"The Competition Commission (CC) has provisionally found that the acquisition by British Sky Broadcasting plc (BSkyB) of a 17.9 per cent share in ITV plc restricts competition and therefore operates against the public interest."From the Competition Commission report, 2 Oct 2007
TV wars
Richard Branson might have won today's battle but Rupert Murdoch may have won the war.
His mighty News International corporation received a rap over the knuckles after the competition watchdog, the Competition Commission (CC), made a provisional statement that Murdoch would have to sell all or part of his £940m stake in ITV - because it could hamper the company's future plans.
Virgin Media takeover unlikely
However, Mr Branson's Virgin Media has emerged from the skirmish fairly battered.
It is now unlikely to be able to afford to buy up ITV, the largest shareholder in ITN which also makes Channel 4 News.
What else did the report say?
The Competition Commission's Chairman and Chairman of the Inquiry Group, Peter Freeman, added:
"The acquisition has made BSkyB ITV's largest shareholder by some margin and whilst our provisional view is that this would not necessarily affect day-to-day operations, BSkyB would be able to influence ITV's key strategic decisions, particularly relating to investment, whether in content, capacity or new technology."
What next for BSkyB?
The CC must send its final report to John Hutton, Secretary of State for the Department for Business, Enterprise & Regulatory Reform (BERR) by 2 January 2008, although it aims to do so in December.
Mr Hutton must then decide on the basis of the report what action should be taken regarding BSkyB and its stake in ITV.
