Saturday, January 16, 2021

LOSS OF SOCCER THROWS U.K.’S BSKYB FOR A LOSS

November 11, 2013 by · Leave a Comment 

Demonstrating the importance of live sports to TV broadcasters in virtually every area of the world, shares of Britain’s BSkyB plummeted 10 percent today (Monday) following word that it was outbid by rival BT for rights to air live Champions League and Europa League soccer matches. Today’s Guardian newspaper said that around $2.3 billion was wiped from the stock’s value. The drop particularly impacted Rupert Murdoch’s 21st Century Fox, which owns a controlling 39 percent of the satellite broadcaster. BT said that it had agreed to pay about $1.4 billion over three years beginning in 2015 to broadcast the games. BSkyB acknowledged that the bid was “far in excess” of its own. Shares in BT also fell in today’s trading as investors worried that it had overpaid for the rights.