Thursday, November 17, 2011

#BSkyB #NewsCorp : The Steps For John Malone To Get To BSkyB

It’s a long shot that Rupert Murdoch archrival John Malone’s Liberty Global or DirecTV could end up controlling BSkyB, but it’s a direct route. News Corp has already called off its planned acquisition of the BSkyB shares it doesn’t own, at least temporarily.

There is a precedent too.

Here’s how it could go:

- News Corp sells off its UK newspapers to try to keep its hold of and possible future acquisition of cash-generating BSkyB.

- The UK populace and their Parliament turn against News Corp because of its hacking and bribery to the point that “News Corp executives and non-executive directors have shown themselves completely unable to control what was going on in the paper and make sure the company’s acting within the law,” Chris Bryant, a Labor lawmaker, told “That raises questions about whether they should have any stake in BSkyB.”

- The independent UK regulator Ofcom, which is already investigating the matter, then declares that News Corp’s corrupt practices mean that it must sell its 39% interest in BSkyB. Ofcom has the power to revoke BSkyB’s license if it finds that executives are not “fit and proper” to hold it.
- Liberty Global, with a number of successful cable TV operations on the continent, steps in and buys control of BSkyB.

Who else would or could buy BSkyB? British Telecom?