Sky buys 18% of ITV!

[Analoguesat]

British Sky Broadcasting Group plc ('BSkyB') announces that it has acquired a stake in ITV plc ('ITV'). BSkyB has today acquired 696 million shares, representing 17.9 per cent of the issued share capital of ITV, at a price of 135 pence per share. The total consideration amounts to approximately GBP 940 million, which will be funded from the group's existing cash balances and its currently undrawn revolving credit facility.

BSkyB wishes to explore options to create value in the interests of both BSkyB's and ITV's shareholders. BSkyB believes that ITV is one of Europe's premier broadcasting and production businesses, and holds substantial potential for long-term value creation. This acquisition of shares has taken place without the prior knowledge of the ITV board of directors, but BSkyB has today communicated to ITV's board its intention to be a supportive shareholder.

BSkyB has no intention of acquiring shares that would result in BSkyB's stake exceeding 19.9 per cent or making an offer for the whole of ITV's remaining share capital.

BSkyB notes that under Section 350(3) and Schedule 14 of the Communications Act 2003, BSkyB is prohibited from controlling an interest of more than 20 per cent
in ITV plc.

[BGonaSTICK]

Bloody hell, that was a 'sly' move, and a smart one too.

When is the regulator going to step in and stop Sky swallowing up the entire UK TV broadcast market, or is Murdoch completely above all that type of 'inconvenience'?

A virtual monopoly on satellite, a big chunk of Freeview and now a meaningful stake in ITV. That will be a useful bargaining chip in any deal with NTL, assuming that goes ahead, which now I somehow doubt.

Anything else I've missed?

[Analoguesat]

Speculation on the forums says its a spoiler to stop NTL getting their grubby mitts on ITV

[BGonaSTICK]

A pound to a penny... >