Watchdog to investigate Sky's ITV stake

26-02-2007

Watchdog to investigate Sky's ITV stake
Media regulator Ofcom has been told to investigate British Sky Broadcasting's (BSkyB) stake in ITV by the government.

BSkyB bought the 17.9 per cent share last November while the commercial broadcaster was subject to takeover bids from cable rival NTL, which has since been merged into Virgin Media.

Ofcom's investigation will centre on whether BSkyB's move was in the public interest.

Trade and industry secretary Alistair Darling today told MPs of his decision to refer the matter to the media watchdog, which follows claims from the group that has now become Virgin Media that BSkyB was directly trying to scupper any takeover of ITV.

"I am today asking Ofcom to conduct an initial investigation into the public interest issues that may be raised by this transaction and to report back to me," he said to parliament.

"I wish to emphasise that this decision only means there will be an initial investigation by Ofcom and is without prejudice to any decisions I take subsequently on whether a fuller investigation by the Competition Commission may be necessary."

Last month the Office of Fair Trading claimed that a "relevant merger situation" had been created by BSkyB's acquisition of a 17.9 per cent stake in ITV; calling for the matter to be investigated further.


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