Murdoch May Become Chairman Of BSkyB

The Board of satellite television broadcaster, BSkyB, is to meet tomorrow to discuss the replacement of its chairman Jérôme Seydoux, also chairman and majority shareholder of Pathé. Seydoux’s departure from BSkyB follows the acquisition of Pathé by French utilities group Vivendi (see BSkyB Shares Soar On Canal Plus Merger Speculation).

When Vivendi took control of Pathé it also acquired the group’s 17% stake in BSkyB and effectively bought itself two seats on the BSkyB Board. This is significant for Sky as Vivendi’s Canal Plus supplies technology to BSkyB’s digital rival, ONdigital (see Digital TV Services Fall Behind Schedule).

The Financial Times this morning reports that Rupert Murdoch, whose News International holds a 40% stake in BSkyB, may become chairman of BSkyB himself, rather than hand the role to a Vivendi executive. BSkyB declined to comment on this speculation.

It is expected that as a result of the Vivendi-Pathé merger, BSkyB could resume its own merger talks with Canal Plus. These were aborted earlier in the year over issues of management and overall nationality of the combined group (see Canal Plus And BSkyB Talks Suspended). However, a merger with Canal Plus now would give French group Vivendi, owner of both Canal Plus and Pathé, the majority stake in BSkyB.

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