News International and BSkyB

So the 'fit and proper' test looks likely to be inforced by Ofcom on NI's potential acquisition of the stake that it doesn't already own in BSkyB. Have I missed a point, but surely if Ofcom finds that NI is NOT fit and proper, then they'll have to dispose of the majority stake they already own?

Now I'd be more than happy to see BSkyB cleansed of NI's involvement, but who would be a potential acquirer of the stake?

Already tonight there are suggestions that the US authorities are monitoring the situation with a view to charging NI (their corporate domicile is in the US) over supervision issues in relation to the NotW, so this could spread globally potentially destroying NI in the process.

Could we be seeing a contagion develop, considering that Brookes today has stated there's more to come out, that will recast the UK TV market in a truly sensational manner?

Well on your first point, watching the BBC News Channel earlier today that's what I assumed would be the case too.

You raise a good point - who else has got a spare £8bn? Your surely just going to get another media mogul/Qatar based investor buy the stake.

I hadn't yet heard about US authorities looking into the situation. But if that did become the case, it could potentially be huge. This is the story that just keeps on giving. Whatever Brookes and Co keep saying there's more to come out, must be really bad, considering the events of this week.

I wouldn't mind a US company coming to help prop up BSkyB. Would love the News International ghost to be well and truly exorcised from Sky.

It would be bad news financially I suppose for BSkyB, but would do much for fixing the bias that has made Sky News unwatchable for me.

Perhaps NBC Universal, or maybe even HBO

Indeed, that is the suggestion, that the 'fit and proper' test applies to whoever is deemed to be in control through owning a significant or majority shareholding of the company owning the broadcast license(s) . If Ofcom deem that News Corporation is not fit and proper to have control of BSkyB's broadcast licenses, either BSkyB would have to give up those licenses, or News Corp. would have to relinquish enough of its shares so that they no longer had effective control of the company, or perhaps even all its shares.

[quote="newsatten" pid="713872"]

The point you missed is that it's News Corp who are looking to buy out the 61% of BSkyB they don't already own, not News International.

News International is a wholly owned subsidiary of News Corp.

Yep - the News Corp / News International / BSkyB fork means that it's going to be tricky to implement "Fit and proper" - unless it can be proved that News Corp management were aware of the News International illegalities I guess.

However hasn't James Murdoch already admitted (apologised for?) authorising illegal payments to police without asking too many questions ? That may give Ofcom more to work on.

If News Corp was forced to sell it's shares in BSkyB, it would probably be a Middle Eastern investment fund that bought up the rest of the shares.
ADMIC is already working with BSkyB on Sky News Arabia, so maybe they would look to invest more in the UK company.
Is HBO big enough to buy a majority stake in BSkyB?

If anything I think this might work to News Internationals advantage. If they're willing to shut down the News of the World they might be just as willing to get rid of The Sun and The Times to get their hands on Sky, removing a major barrier and allowing them to keep Sky News. Plus the BSkyB share price dropping works in their favour too.

NBC-Universal could also buy shares in BskyB

HBO is merely a wholly-owned premium TV subsidiary of Time Warner.

In other words, a CNN stablemate. I didn't know that actually.

NBC Universal was recently purchased by Comcast, so I'm not sure they'd be in a position to buy it.