Sky's ITV Stake Decided Today - VM May Bid For ITV

[Horizon]

The appeal about whether Sky can keep its stake in ITV is due today. If Sky has to sell its entire holding in ITV, it is expected that several companies may make a bid for ITV, including VM.

http://www.broadcastnow.co.uk/news/2..._bskybitv.html

[Media Boy UK]

• BSkyB ordered to cut ITV stake

• BSkyB has been ordered to sell the majority of its controversial 17.9% stake in ITV.

Today's long-awaited Competition Appeal Tribunal ruling, that the shareholding must be reduced to under 7.5% as ordered previously by the Competition Commission and secretary of state John Hutton, leaves Sky facing a £650m loss on its investment.
The satellite broadcaster is understood to be considering yet another appeal, further lengthening a process that began with then chief executive James Murdoch's dramatic decision to snap up ITV shares in November 2006.

Delaying the process could help save Sky hundreds of millions of pounds. Since it bought the stake, ITV's shares have collapsed and Sky is unlikely now to get close to the 135p per share it originally spent.

Avoiding an immediate "fire sale" through yet another appeal may give ITV boss Michael Grade time to show some sort of turnaround of the troubled broadcaster and improve the share price.

Sky has been given a set period to reduce its stake - believed to be about six months - but if it appeals it can request a suspension of that remedy while it argues at the court of appeal and potentially the House of Lords or even European court of justice.
When James Murdoch spent £940m of Sky's cash on the 17.9% stake, the move was seen as an attempt to scupper Virgin Media's proposed merger with ITV at a time when the broadcaster was rudderless in the wake of Charles Allen's ousting that August.

Since Sky swooped, ITV has appointed former BBC chairman Grade but delays in generating cash from its online and international operations, a raft of phone-in scandals and a dramatic downturn in the advertising market over recent months have all pushed ITV's shares to record lows.

Info from guardian.co.uk

[Sirius]

Originally Posted by Media Boy

• BSkyB ordered to cut ITV stake

• BSkyB has been ordered to sell the majority of its controversial 17.9% stake in ITV.

Today's long-awaited Competition Appeal Tribunal ruling, that the shareholding must be reduced to under 7.5% as ordered previously by the Competition Commission and secretary of state John Hutton, leaves Sky facing a £650m loss on its investment.
The satellite broadcaster is understood to be considering yet another appeal, further lengthening a process that began with then chief executive James Murdoch's dramatic decision to snap up ITV shares in November 2006.

Delaying the process could help save Sky hundreds of millions of pounds. Since it bought the stake, ITV's shares have collapsed and Sky is unlikely now to get close to the 135p per share it originally spent.

Avoiding an immediate "fire sale" through yet another appeal may give ITV boss Michael Grade time to show some sort of turnaround of the troubled broadcaster and improve the share price.

Sky has been given a set period to reduce its stake - believed to be about six months - but if it appeals it can request a suspension of that remedy while it argues at the court of appeal and potentially the House of Lords or even European court of justice.
When James Murdoch spent £940m of Sky's cash on the 17.9% stake, the move was seen as an attempt to scupper Virgin Media's proposed merger with ITV at a time when the broadcaster was rudderless in the wake of Charles Allen's ousting that August.

Since Sky swooped, ITV has appointed former BBC chairman Grade but delays in generating cash from its online and international operations, a raft of phone-in scandals and a dramatic downturn in the advertising market over recent months have all pushed ITV's shares to record lows.

Info from guardian.co.uk

This has so made my day. I so like to see Sky get such a good kicking


All we need now is for Sky to lose there other court case with VM and my life will be complete

dramatic downturn in the advertising market over recent months have all pushed ITV's shares to record lows.

My next question is how much will Sky lose over this ???

[Bob]

From the figures I have seen around 2/3's of what the orignally paid...that's if they sell now

[Sirius]

Originally Posted by Bob

From the figures I have seen around 2/3's of what the orignally paid...that's if they sell now

Watch there subscriptions prices go up to cover for that lose

[WHISTLED]

After todays city nightmares, could lose even more!

[Bob]

Originally Posted by Sirius

Watch there subscriptions prices go up to cover for that lose

However, I can see them holding out as long as they can because things could improve. I don't blame them. But on the other hand it could get a whole lot worse. They have quite a difficult decision to make.

They could of course win their appeal...

[Nikesh]

Wow I can't believe it's been nearly 2 years since they bought the shares in ITV!!

Good new for Virgin, if they are still interested in merging with them though...

If VM get the share in ITV I can def see ITV been on demand

[Ignitionnet]

Originally Posted by Sirius

Watch there subscriptions prices go up to cover for that lose

The downside being that all the subs regardless of platform who take Sky services see their subscriptions go up with it. Sky's prices wholesale go along with their own customer's prices

Well VM will be increasing the sky sports price from 2morrow if your on XL by £1 that was due to Sky increasing there prices

[rossdagley]

And maybe, just maybe, VM will add ITVHD

Originally Posted by rossdagley

And maybe, just maybe, VM will add ITVHD

If they decide to bid in a stake then you can pretty much see VM adding ITV HD and ITV ondemand, it just makes sense

[OLD BOY]

Originally Posted by darthlinux

If they decide to bid in a stake then you can pretty much see VM adding ITV HD and ITV ondemand, it just makes sense

There is nothing to stop ITV On Demand coming to Virgin Media right now, as far as I can see. Sky have already undertaken not to interfere in ITV's decision making.

Given that VM do not show all the +1 channels that they own on the VM platform, there is no guarantee that ownership of ITV by VM in the future will make a scrap of difference in terms of whether we get ITV HD or VOD.

[Arthurgray50@blu]

I just hope and pray, that VM don't make a bid for ITV, if they cannot run there own network properly, and keep there customers happy, how are they going to run ITV properly, and don't forget VM take off channels, that are not popular.