Sky ponders sale of ITV

It has been on the cards for long while now and no matter how hard they try BSkyB cannot keep hold of their stake in the rival channel ITV for much longer.

However, holding onto the shares for a while has helped Sky see their stake rise in value slightly, although there is little chance of the price ever reaching what BSkyB paid for the 17.9% stake.

The favourites to buy the stake are Big Brother producer Endemol, RTL owner of Five and a few other interested parties. Yet it is still wondered whether this share in ITV is worth the £273 million valuation going on the current share price.

However, with BSkyB still appealing about the competition Commissions decision that they should take their stake to below a 7.5% level, what BSkyB does next depends on different circumstances. They could if they wanted to, sell the holding on the open market.

In the mean time, there are pressures on ITV, which on the one hand make the stake interesting to an investor, but on the other not necessarily at the market value.

Story link: Sky ponders sale of ITV