Sharewatch: BSkyB Falls As Murdoch Shuns Channel Five

BSkyB was seen in focus yesterday, down 0.44%, after releasing its third quarter results, which revealed the group added 150,000 subscribers to its digital satellite platform in the three months to September 2002 (see BSkyB Adds 150,000 New Subscribers In Q3).

Meanwhile, News Corp chief executive, Rupert Murdoch, dismissed speculation that he is planning to bid for Channel Five once the media ownership regulations are relaxed in the forthcoming Communications Bill. He also pledged to block any move by BSkyB to acquire the channel in the future.

Carlton and Granada were also in the spotlight, down 2.51% and 2.22% respectively on concerns that their proposed £2.6 billion merger could be delayed if the Communications Bill is voted down in the House of Lords. Earlier this week influential Labour peer, Lord Puttnam, warned that the Bill will face strong opposition unless unless plans to relax the UK media ownership regulations are abandoned (see Puttnam Threatens To Quash Communications Bill).

Broader market sentiment was dampened following the suicide car bombings in Riyadh, which left 29 people dead and almost 200 injured. The attacks also sent international terrorism back to the top of the corporate agenda.

The closing prices of media company shares on Tuesday were: