British Sky Broadcasting (BSkyB), the broadcasting arm of the Murdoch media empire in the UK has been told that it should cut its stake in ITV to below 7.5 per cent because the shareholding reduces competition in the all-TV market and works against the public interest, the Competition Commission said last week.
BSkyB purchased 17.9 per cent of ITV in a move which many saw as a way of blocking rival broadcaster Virgin Media from merging / acquiring ITV.
However with the Competition Ruling saying that BSkyB should cut their holding down to 7.5 per cent, BSkyB stand to loose £205 million due to the poor performance of ITV’s share price since they were purchased.
Presumably, if BSkyB do indeed have to lower their share holding, this could put ITV back on the table for Mergers and Acquisitions, a move that I feel will stifle the industry even further.
In my humble opinion, ITV would do better to go it alone, they have a great brand that can be seen through such classics as Coronation Street which is sold around the world. The company needs to go back to what it does best – making high quality television content. Standing up against the repeat ridden other digital channels that it will soon have to compete with on a full national level, I can see it doing no wrong in investing in its programs, as looking as what was offered as Christmas television we will need somewhere to turn to.