BSkyB Leaves The Alliance

Following pressure from the ITC, *BSkyB Share Price Plummets, BSkyB is preparing to pull out of the British Digital Broadcasting consortium. The two other shareholders, Carlton Communications and Granada, are said to have agreed to buy BSkyB’s one-third stake for £75 million if the bid is successful. BSkyB will still continue to benefit in the long-term if BDB do win as it will remain one of BDB’s major programme suppliers.

The three parties involved refused to confirm or deny these claims.

Meanwhile, the ITC’s intervention to make the BDB bid more ‘acceptable’ on competition grounds is being seen to indicate the ITC’s preference for the BDB bid. BDB is now the favourite to win the franchise. The ITC is expected to make a decision by the end of this week.