BSkyB has denied press rumours that it is interested in making further investment in Premiere World, the pay-TV business of Kirch.
Sky already holds a 22% stake in the KirchPayTV operation (see
Murdoch In ‘Make Or Break’ Talks Over Kirch), but has made it clear that it will not be seeking any further investment in the division and is intending to exit from the troubled business altogether. Nevertheless, press reports have continued to speculate about Sky taking an enlarged stake in the business.
Analysts at ABN Amro believe that Premiere could be made into a profitable business with some investment, especially given that it has around 2.5 million pay-TV homes installed – Europe’s largest potential pay-TV market.
Further investment by BSkyB is unlikely, says the broker, as it would be received negatively by the market, particularly given that the company has only recently become cash-positive after heavy investment in digital television in the UK.
