Quote:
Originally Posted by TV Boy
BSkyB could lose in the region of £200m if it is forced to sell its 17.9% stake in ITV, one of the sanctions that could be imposed by the Competiton Commission after its provisional findings this morning.
The Competition Commission said the holding restricted competition, is against public interest and that such a stake would allow the satellite broadcaster to weaken ITV and alter its strategy.
Sky paid £940m (135p a share) in November 2006, a move widely regarded as a blocking tactic against NTL's ambitions to buy ITV. Based on ITV's current share price of 102.4p, Sky's holding is valued at £717m.
However, Virgin Media sources said that although the cable giant is pleased with the provisional findings, it was "unlikely" to make a renewed bid for the UK's biggest commercial broadcaster.
"First of all the credit market is in a mess," said a source. "On top of that, Virgin Media itself is up for sale. Thirdly it does not have a full time chief executive officer – it needs to get its own house in order first."
The Competition Commission will reach a final decision before the end of the year.
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This is exactly what Ive been talking about. Sky obviously thought to themselves that they were TOO powerful to be called into an office and told to sell the shares again, and now they find themselves preparing for a loss of upto £200m this year.
Although the CC has released 3 remedies to combat this, there are others also, which dont involve Sky selling.
Dont forget, also, that a company such as News Corp. could buy the ITV stake off Sky, even though News Corp. owns Sky.
One way or the other, they have paid £200m for nothing. And that shows how much more money than sense Sky has.