BSkyB @ 635.50p, -22.50p (-3.42%).
So James Murdoch has stood down as Chairman of BSkyB (but retains a non-executive position on the board) in a move that may help to deflect some of the negativity linked to News Corp, (through the long running phone and email hacking scandal that led to the demise of The News of the World), from spreading to BSkyB.
Unfortunately, it appears that Sky News has created its own news-worthy headline with media reports that the company "was a heavy faller on reports that its Sky News unit had been involved in hacking the e-mails of a man accused of faking his own death. Sky said it believed it was in the "public's interest"."
I can only think that the story was about to break!
It certainly seems to be a widening circle of questionable investigative methods but it remains to be seen if Sky can put up a sufficient defensive firewall to maintain its respected position of neutrality.
Even more important to Sky's fortunes is the need to ensure that nothing threatens its ability to bid for and retain the rights to Premier League football particularly at a time when the broadcasting industry has opened up a new front of competition with the entry of Netflix into the UK and the increasing viability of Internet TV.
It has home court advantage, is the incumbent pay TV operator in the UK, and has deep pockets but, in my view at least, the company's unique selling point and jewel in the crown continues to be live Premier League football.
So if the company can satisfactorily defend its reputation (James Murdoch's stepping down helps, even more so if the episode goes with him), BSkyB should be able to protect its position as the major source of live Premier League football in this country which could mean that the company, on 13 times forecast earnings and a yield of 3.9%, might yet present a brave but compelling investment opportunity.
Even more important to Sky's fortunes is the need to ensure that nothing threatens its ability to bid for and retain the rights to Premier League football particularly at a time when the broadcasting industry has opened up a new front of competition with the entry of Netflix into the UK and the increasing viability of Internet TV.
It has home court advantage, is the incumbent pay TV operator in the UK, and has deep pockets but, in my view at least, the company's unique selling point and jewel in the crown continues to be live Premier League football.
So if the company can satisfactorily defend its reputation (James Murdoch's stepping down helps, even more so if the episode goes with him), BSkyB should be able to protect its position as the major source of live Premier League football in this country which could mean that the company, on 13 times forecast earnings and a yield of 3.9%, might yet present a brave but compelling investment opportunity.
Related articles:
- http://www.telegraph.co.uk: BSkyB investors sample the bitter taste of a Murdoch discount again
Earlier posts:
- BSkyB: Where to from here?
- BSKYB: week ahead and take-over musings
- Smoke and mirrors: BSkyB, and The News of the World!
- Adventures in Equities: Wed 22 Dec: National Grid opening higher
Earlier posts:
- BSkyB: Where to from here?
- BSKYB: week ahead and take-over musings
- Smoke and mirrors: BSkyB, and The News of the World!
- Adventures in Equities: Wed 22 Dec: National Grid opening higher
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