Sky to reduce stake in ITV

It was probably one of the most controversial investments made by BSkyB, when the company purchased a 17.9% stake the independent TV channel ITV costing around £940 million.

However inevitably this holding was brought up to the attention of the Competition Commission and their recommendation is believed to be that the company sell part of the stake, probably to reduce it down to around the 10% mark.

But this could cause the company problems as the purchase price was around has been seriously eroded due to the company’s share price sliding, in fact the BSkyB’s stake could be worth as little as £593 million.

John Hutton the Business Secretary now has four week to come up with a final decision regarding this matter.

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