Sky Shares Show Small Rise On News Of Ball’s Exit

City investors have offered a gently positive reaction to the announcement of the departure of BSkyB’s chief executive, Tony Ball, with shares up slightly by 1.5% to 630.5p by mid-morning today.

Sky’s chairman and head of News Corporation, Rupert Murdoch, is reportedly planning to install his youngest son James as Ball’s successor at the satellite broadcaster. Whilst the City is known to be impressed with Tony Ball’s abilities, James Murdoch’s appointment to the board and chief executive roll brings some concerns for investors and shareholders.

One of these concerns is that the installation of father and son as chairman and chief executive might infringe corporate governance rules that require a board to remain independent of the dominant shareholder (News Corp is the majority shareholder in BSkyB, with a 35.4% stake).

Some investors are also anxious over James Murdoch’s ability, at the age of just 30, to run the UK’s 18th largest public company, despite a good performance in his current position at News Corp’s Star TV network in Asia.

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news by visiting the site.