Sky's lost $1.2bn on ITV

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Some you win, some you lose, but James Murdoch’s decision to buy 17.9% of ITV as a ‘spoiler’ to stop the commercial broadcaster falling into the hands of arch-rival Virgin Media has proved to be a costly investment.

Not only has it incurred the wrath of the UK’s competition authorities, it means – as at July – that the purchase now represents a paper loss of £629m ($1.2bn). BSkyB bought in at 135p a share back in November 2006. ITV’s stock price is now at 44p. ITV suffered a further fall after Deutsche Bank’s negative note reduced its price target for ITV from 55p to 48p, and repeated its “sell” advice to investors.

ITV was also hurt by the announcement that its ‘Kangaroo’ VOD joint-venture with the BBC and Channel 4 was to be referred to the Competition Commission, and thus almost certainly delayed until next year.


Source:RapidTVNews

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