BSkyB buys 17.9% stake in rival ITV

November 18, 2006 British Sky Broadcasting has launched a stealth raid on ITV, paying £940 million ($1.8 billion) for a 17.9% stake in the network, making it the commercial broadcaster's biggest single shareholder. In a statement to the London Stock Exchange, CEO James Murdoch said Sky plans to be "supportive shareholders" of ITV and has "no intention" of making an all-out bid for control. Nevertheless, the development sent shock waves through the media industry here and looks likely to scuttle ongoing merger talks between ITV and cable group NTL or a possible private-equity backed deal with pan-European free television group RTL.

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