Sky Furthers Net Investments

BSkyB is set to announce plans to further its investment in online developments by up to £250 million. Yesterday it acquired a 5.4% stake in sports internet company Sportal and further investment plans are expected to be announced when the group releases its interim results next week.

The broadcaster is the third media company in recent weeks to announce massive net investment. Pearson began the trend when it placed shares to raise £250m for online developments (see Pearson Places Shares To Fund Further Net Investment) and was followed by Chrysalis a few days later (see Chrysalis Unveils Web Strategy).

The stake in Sportal has the right over time to be increased to 12.5% and the two groups plan to work together to create unique content, launch new sites and develop interactive applications and services. John Swingewood, director of new media at BSkyB, said: “Sky is excited about this partnership. It also gives us an opening for worldwide distribution of Sky Sports’ own online content. Sky’s community of sports fans will also benefit from being able to draw on the worldwide online sports content that Sportal can offer.”

It is believed that the deal could be the first step towards an integration of TV and internet sports coverage for the satellite broadcaster.

BSkyB: 020 7705 3000