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| Version 3 | Version 4 |
|---|---|
| Court tells Sky to cut ITV stake | Court tells Sky to cut ITV stake |
| (31 minutes later) | |
| The pay-TV group BSkyB has been ordered to reduce its stake in rival ITV by a UK court. | The pay-TV group BSkyB has been ordered to reduce its stake in rival ITV by a UK court. |
| BSkyB lost its appeal to keep the 17.9% share and was told to reduce it to below 7.5%. | BSkyB lost its appeal to keep the 17.9% share and was told to reduce it to below 7.5%. |
| It bought the stake for £940m in 2006, effectively blocking NTL, now Virgin Media, from buying ITV. | It bought the stake for £940m in 2006, effectively blocking NTL, now Virgin Media, from buying ITV. |
| The Competition Commission had already ruled that Sky's stake gave it undue influence in the UK media and was not in the public interest. | The Competition Commission had already ruled that Sky's stake gave it undue influence in the UK media and was not in the public interest. |
| BSkyB said: "We will review the judgement and order carefully and consider next steps in due course." | BSkyB said: "We will review the judgement and order carefully and consider next steps in due course." |
| The satellite broadcaster has previously argued that it is not breaking UK media ownership laws because the stake is less than 20%. | The satellite broadcaster has previously argued that it is not breaking UK media ownership laws because the stake is less than 20%. |
| The company maintains the deal was an investment and not designed to stop ITV being bought by rival NTL. | The company maintains the deal was an investment and not designed to stop ITV being bought by rival NTL. |
| Further hearing? | Further hearing? |
| The broadcaster has fought to retain its stake since the Competition Commission decided in late 2007 that the purchase could be against the public interest. | The broadcaster has fought to retain its stake since the Competition Commission decided in late 2007 that the purchase could be against the public interest. |
| Early in 2008 the-then Business Secretary, John Denham, upheld the decision, and the Competition Appeal Tribunal (CAT) did likewise in September 2008. | |
| In March 2009 the case went to the Court of Appeal for hearing, leading to the latest court decision. | In March 2009 the case went to the Court of Appeal for hearing, leading to the latest court decision. |
| "After three years of challenges by Sky, the Court of Appeal's decision should now bring this matter to a close, " a Virgin Media spokesman said. | "After three years of challenges by Sky, the Court of Appeal's decision should now bring this matter to a close, " a Virgin Media spokesman said. |
| "The court's judgement reaffirms the prior rulings... that Sky's 17.9% stake in ITV is anti-competitive. We hope Sky now reduces its stake in ITV without further delay" he added. | "The court's judgement reaffirms the prior rulings... that Sky's 17.9% stake in ITV is anti-competitive. We hope Sky now reduces its stake in ITV without further delay" he added. |
| Giving his ruling, Lord Justice Lloyd refused permission to take the case to the Supreme Court but Sky can apply directly to that court for a hearing. | Giving his ruling, Lord Justice Lloyd refused permission to take the case to the Supreme Court but Sky can apply directly to that court for a hearing. |
| Toby Syfret, a media analyst at Enders Analysis, said that BSkyB had lost about £500m on its investment because of the slump in ITV's share price. | |
| The firm bought the shares at £1.35 and they now trade at around 58p each. | |
| However, Mr Syfret pointed out that if they had been bought to stop NTL's takeover of ITV then the acquisition had served its purpose. |