BSkyB’s 22% Put Option Set To Force Kirch Collapse

BSkyB yesterday afternoon exercised its put option with respect to its 22% stake in KirchPayTV in a move that is likely to be the final nail in the coffin for the heavily-indebted media group Kirch.

Sky’s put option gives it the right to have its 22% stake bought back by Kirch and this is what was exercised yesterday. The stake is worth E1.7 billion and as a result is likely to force Kirch’s final collapse. BSkyB has said that it doesn’t expect to receive a significant amount from the put option, if anything.

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