BskyB buys 17.9% of ITV

I heard it first on Sky News, owned by BskyB. 17.9% of ITV for £940m

And wasn't it the same BSKYB who, a few days ago said that ITV would not bring anything to NTL?

Oh dear, oh dear.

yes oh dear! I dred to think!

Digitallook Report- More Info

The sooner Murdoch gets a one-way ticket out of the UK, the better.

I kinda knew this was happening. If you look at how the Murdoch papers reported the NTL merger bid, you could tell they were all woven together by the big man himself.

Potentially interesting times ahead news-wise, what with ITV owing 40% of ITN.

BBC News article
Reuters report

There's hardly anything left of ITV so they must not let bids get them!!

Digitallook Report- More Info Digitallook report

It's important not to lose sight of the fact that they've bought shares in ITV Plc, and not the ITV Network. So if NTL felt threatened by Sky's 17.9% share, they could always buy SMG's television assets before merging.

BUt doesn;t that mean BSKYB also owns a share in STV?

From Broadcast

Sky spends £940m for stake in ITV
Chris Curtis
6:00pm
BSkyB has spent £940m to buy 17.9% of ITV, in a move designed to throw a spanner in the works of NTL's bid for the broadcaster. The satellite giant intends to be a "supportive shareholder" and does not intend to bid for the company.

Sky said it wanted to explore options "to create value in the interests of both BSkyB's and ITV's shareholders".

It said it "believes that ITV is one of Europe's premier broadcasting and production businesses, and holds substantial potential for long-term value creation".

Sky bought the shares without the prior knowledge of the ITV board of directors, but has already told ITV's board that its intention is to be a "supportive shareholder".

Sky has funded the deal through the group's existing cash balances and itscurrently undrawn revolving credit facility.

Sky cannot own more than 20% under the terms of the Communications Act 2003.

I can honestly say that I never saw that one coming!!