Ofcom To Discuss BSkyB’s ITV Acquisition

Ofcom executives are said to be discussing BSkyB’s shock acquisition of an almost 18% stake in the UK’s biggest commercial broadcaster, ITV.

Following the acquisition of the stake, Ofcom will have to decide whether the move constitutes a “change of control” at ITV and whether it would compromise the commercial broadcaster’s obligations as a public service provider as well as its programme investment.

It is the first time since Ofcom was established in 2003 that it has been called on to address a change of control issue. It will be a particularly sensitive case as it involves so many different parties including the UK’s two biggest commercial broadcasters and its biggest cable provider.

An OFT spokesman told the Guardian today that no complaint had yet been received from NTL, despite Sir Richard Branson, its major shareholder, threatening to do so (see Branson Bites Back At Sky’s Swoop On ITV).

Meanwhile, in a separate development, ITV also confirmed BSkyB bought its £940 million stake through its Sky Broadband Services offshoot with money previously thought to have been earmarked for its residential broadband service.

BSkyB: 0207 705 3000 www.sky.com Ofcom: 020 7981 3040 www.ofcom.org.uk