BSkyB Chief Exec Defends Company’s Swoop On ITV Shares

BSkyB is a long-term investor in ITV that is keen to see the business grow, according to chief executive James Murdoch.

Speaking on BBC Radio 5Live last night, Murdoch told Jeff Randall that the company’s decision to buy an almost 20% stake in ITV (see Branson Bites Back At Sky’s Swoop On ITV) was not designed to spoil a potential merger between NTL and ITV, whose board rejected a bid shortly after BSkyB announced its move (see ITV Board Rejects NTL Merger Bid).

“As I said at the time the dynamics of the market around ITV clearly played a part in creating the opportunity,” Murdoch said. “But no, [it was not a spoiler] we are a long term investor in ITV and we are keen to see the business grow.”

Contrary to rumours that Murdoch’s father Rupert was behind the deal, James told the BBC station that he had instigated the move.

“We’d been looking at ITV for a long time, but we really started thinking about it a couple of weeks ago when my [chief financial officer] and I were on a flight to Spain for an investor conference,” he told Jeff Randall.

“We consulted the board two days after that, and the day after that we did the deal,” he added.

NTL major shareholder, Sir Richard Branson, heavily criticised Sky’s move, but Murdoch remained diplomatic. “I try not to get into personal attacks or anything like that,” he said. “We at Sky are very, very, very proud of the contribution we have made to the media market place in the UK and consumers across the UK.”

He added: “It’s always been about choice, about innovation, about moving forward quickly. And we think we are just trying to do a good job for our customers.”

Murdoch also said he was supportive of last week’s shock move of Michael Grade from the BBC to ITV (see BBC Chairman Jumps Ship To ITV Top Job).

“I think all shareholders in ITV are now very keen to see him get on board, and see his ideas for growth,” he said. “Every shareholder in ITV is interested in exactly what he’s going to say when he’s got his feet under the desk.”

BSkyB: 020 7705 3000 www.sky.com BBC: 020 8743 8000 www.bbc.co.uk