BSkyB close to inking for Premiere stake
Deal hinges on equity boost
According to the Financial Times, BSkyB insiders indicate a deal is imminent. BSkyB will pay about DM 1 billion ($500 million) for 24.9% of Kirch's pay TV division, marking a major push into Europe for Rupert Murdoch's News Corp., which holds a controlling 40% of the satcaster.
The deal is understood to be conditional on Kirch injecting fresh equity into the division. Exchanging shareholdings is possible, and BSkyB may also come away with a stake in Teleclub, Kirch's Swiss pay TV channel. Any agreement will have to be cleared by German regulators.
Some observers warn, however, that Murdoch and Kirch have been down the aisle before failing to link up at the last moment.
Sharing sports
Meanwhile, a rethinking of the regulations covering digital TV in the U.K. means that BSkyB will now supply its Sky Sports 2 channel to rival ONdigital, the platform co-owned by ITV network companies Carlton and Granada.
BSkyB had withheld the service on the grounds that it would contravene the complicated digital "points" system set up by the ITC, Britain's commercial TV regulator.
BSkyB complained that while it has to supply English Premier League soccer to ONdigital, ONdigital does not have to supply European Champion's League soccer to BSkyB. The ITC said it hoped ONdigital would now reconsider its policy.
