Murdoch Rules Out BSkyB-Canal Plus Merger

Strategic Insights -

Rupert Murdoch has categorically stated that there will be no merger between BSkyB and Canal Plus. He expressed concerns that such a deal would make the British satellite broadcaster vulnerable to the interventionist nature of French politics. Speaking in London, Murdoch emphasized that BSkyB is a valuable British asset and that he is not willing to see it become a "football for French politicians." This decision comes despite speculation that BSkyB and Canal Plus had held merger talks earlier this year.

Key Takeaways:

  • Rupert Murdoch, the CEO of News Corp, has ruled out a merger between BSkyB and Canal Plus, citing concerns over French politics and the company's independence.
  • Murdoch expressed admiration for Vivendi and its chairman Jean-Marie Messier, but stated that a merger between BSkyB and Canal Plus is not possible.
  • BSkyB and Canal Plus have held talks about working together on projects such as acquiring sport broadcasting rights, but this would not involve a merger.
  • News Corp, the largest shareholder in BSkyB, is committed to its stake in the company, which has invested hundreds of millions of pounds in its digital service.
  • Epartners, News Corp's internet investment company, has collaborated with Softbank, Japan's leading internet investor, to launch eVentures, which will bring US internet companies to the UK, Australia, New Zealand, and India.
  • Softbank has invested $25 million in eVentures, alongside Epartners, and has also struck a similar deal with Vivendi for continental Europe.
  • Murdoch emphasized that eVentures will remain within News Corp and will focus on bringing US companies to the UK market.

Statistics:

  • BSkyB's shares rose 4.5p to 593p following the announcement.
  • Epartners and Softbank will each invest $25 million in eVentures.
  • Sophie's World has invested $22.5 million in a UK affiliate of E-Loan, the biggest on-line mortgage broker in the US.
  • E-Loan made a stunning NASDAQ market debut on Tuesday when its shares closed up 164 per cent.

Sources:

  • The Times, "Murdoch rules out BSkyB-Canal Plus merger"
  • Financial Times, "Murdoch dismisses merger talks between BSkyB and Canal Plus"
  • New York Times, "News Corp and Softbank Invest $110 Million in eVentures, a US Internet Company"