Sharewatch: BSkyB Dips As Share Buyback Plan Unveiled

Satellite broadcaster BSkyB saw its share price slide by 0.89% yesterday as it announced plans for an ambitious share buyback scheme. The move has yet to be given the all clear by investors, but would enable The News Corporation, parent company of The Times, to increase its stake in the company from 35.3% to 37.2%.

The proposals are likely to come up against stiff opposition from fellow shareholders, as investors are usually reluctant to see too much control or ownership going to one partner. In response to the perceived worries, however, News Corp will be prevented from making an offer for the whole company by a waiver, a guarantee that could ease the worries of other investors.

ITV also saw its share price falter yesterday, losing 0.46% to close at 108˝p. The broadcaster yesterday confirmed that it had completed the 25% acquisition of Scottish Media Group’s stake in breakfast television franchise, GMTV. The move gives ITV a 75% stake in the nation’s highest rated breakfast programme, with The Walt Disney Company owning the remaining 25% share (see ITV Completes Acquisition Of GMTV).

Elsewhere in broadcasting, SMG dropped by 2.02% yesterday as Virgin Radio chief executive John Pearson announced his intention to step down next year to re-address his work-life balance. The move brings to an end Pearson’s career of more than a decade at the radio station although he has pledged to stay on in his current position until a successor is appointed (see Virgin Radio Chief Executive Steps Down).

The FTSE 100 performed poorly yesterday, losing 37.6 points to close at 4,647.9. Elsewhere the FTSE 250 fell even further, losing 59.1 points to close at 6,312.9.

The closing prices of media company shares on Tuesday were: