29 January 2008
Satellite broadcaster BSkyB has been ordered by the Competition Commission to reduce its stake in ITV.
The ruling, which has been accepted by Business Secretary John Hutton, followed concerns that the size of the broadcaster's holding could impact negatively on digital TV industry competitiveness.
As a result, BSkyB must now reduce its stake from its current 18% to below 7.5%.
Moreover, the satellite broadcaster could lose £250 million through the ruling as shares in ITV have dropped in value since the stake was purchased in 2006, the BBC reports.
Although BSkyB has always maintained that the stake did not represent an attempt to exert any influence on their rival broadcaster, it has proved controversial within the industry.
Cable firm Virgin Media claimed that the holding was only purchased in order to block its own attempted takeover of ITV.
The option remains for BSkyB to appeal the Competition Commission's decision; it has until February 25th to do so.