Sharewatch: BSkyB Rises As Murdoch Loosens Grip

Satellite superpower BSkyB was the focus of traders’ attention yesterday as the broadcaster finally bowed to pressure from shareholders to remove chairman Rupert Murdoch from key committees and boards within the company.

The market responded well to the move, with BSkyB enjoying a 1.62% rise in share price to 625˝p yesterday. The ageing media mogul will now relinquish part of his role in the running of the UK’s largest pay-TV operator as efforts are made to quell concerns that, with a 35% stake in the company, Murdoch senior exerts too much control over the board.

Elsewhere, ITV saw a poor day’s trading, dipping by 1.13% to 109žp as figures revealed a dip in average viewing share of more than 2% points year on year during May to just under the 26% mark amid fierce competition from commercial rivals Channel 4 and Five (see Digital Television Round-Up – May 2004).

Magazine giant Emap managed a marginal rise, climbing by 0.61 to 740p, as it was revealed that Zoo has seen its circulation increase to around the 200,000 mark. The reported climb puts Emap’s offering at its closest position yet to IPC’s rival Nuts, which is thought to have a circulation of around 225,000 (see H Bauer Rumoured To Be Preparing New Men’s Weekly).

Continued concern surrounding interest rates preoccupied many city traders yesterday, although the FTSE 100 managed a slight rise of 0.6% to close at 4,458.6. The FTSE 250 closed up 1.4% at 6,100.7.

The closing prices of media company shares on Tuesday were: