Murdoch Signals Bright Future for BskyB

07 October 2004

Media mogul Rupert Murdoch may be having a spot of bother with shareholders over plans to reincorporate his News Corporation empire from Australia to the US [WAMN: 05-Oct-04] but he remains upbeat about the future of BSkyB.

The UK-based satellite TV company, of which he is chairman, can not only withstand the assault of rivals (including the BBC's Freeview and cable providers), but also gather more subscribers into the fold, says Murdoch.

He was speaking at an investors' meeting in New York, ahead of this quarter's figures, where he reinforced the company's target of signing up 10 million subscribers to BSkyB's service in the medium term.

For good measure the patriarch of clan Murdoch also tossed in the suggestion that BSkyB could be bought out by NewsCorp, which currently owns a controlling stake of 35.4%. The stumbling block would be the probable $12bn (€9.4bn, £6.7bn) price tag.

He justified the recent management changes at BSkyB which saw his son, James, taking over as ceo, by saying the previous bosses had ditched volume strategy for profit pushing.

Data sourced from Financial Times Online; additional content by WARC staff