Editing Sky Group (section)

===BSkyB===
====Formation====
[[file:UK satellite TV evolution.JPG|thumb|]]
British Sky Broadcasting (BSkyB) was formed by the merger of [[Sky Television (1984–1990)|Sky Television]] and [[British Satellite Broadcasting]] on 2 November 1990.<ref>Sky and BSB in merger deal. ''The Times'', 3 November 1990</ref> Both companies had begun to struggle financially and were suffering financial losses as they competed against each other for viewers. ''The Guardian'' later characterised the merger as "effectively a takeover by News Corporation".<ref name="guardian.co.uk">[https://www.theguardian.com/media/organgrinder/2009/feb/04/sky-tv-early-years  ''Sky TV's launch: 'a wing and a prayer' '', media editor Maggie Brown, ''Guardian'' ''Organgrinder'' blog, 5 February 2009] Retrieved 24 December 2012.</ref>

The merger was investigated by the Office of Fair Trading<ref>Fair trading office to study merger of Sky and BSB. Melinda Wittstock, Media Correspondent. ''The Times'', 6 November 1990</ref> and was cleared a month later since many of the represented views were more concerned about contractual arrangements which had nothing to do with competition.<ref>Merger of BSB and Sky cleared. Melinda Wittstock, Media Correspondent. ''The Times'', 19 December 1990</ref> The [[Independent Broadcasting Authority]] was not consulted about the deal; after approval, the IBA demanded precise details of the merger, and stated they were considering the repercussions of the deal to ultimately determine whether BSB contracts were null and void.<ref>IBA to rule this week on satellite merger. Melinda Wittstock, Media Correspondent. ''The Times'', 5 November 1990</ref><ref>Bsb broke contract in merger with Sky, MPs told. Peter Mulligan Parliamentary Reporter. ''The Times'', 13 November 1990</ref> On 17 November, the [[Independent Broadcasting Authority|IBA]] decided to terminate BSB's contract, but not immediately, as it was deemed unfair to 120,000 viewers who had bought BSB devices.<ref>IBA to pull the plug on BSB contract. Georgina Henry Media Editor. ''The Guardian''; 17 November 1990</ref>

Sam Chisholm was appointed CEO<ref>Shops to withdraw squarials as three BSB 0ieciitiyes go. Melinda Wittstock, Media Correspondent. ''The Times'', 8 November 1990;</ref> in a bid to reorganise the new company, which continued to make losses of £10&nbsp;million per week. The defunct BSB's HQ, [[Marco Polo House]], was sold, 39% of the new company's employees were made redundant to leave just under 1000 employees,<ref name="guardian.co.uk"/> and many of the new senior BSkyB executive roles were given to Sky personnel. In April, the nine Sky/BSB channels were condensed into five, with EuroSport being dropped soon after the Sky Sports launch.<ref>Eurosport to close down over weekend. ''The Times'', 4 May 1991</ref> Chisholm also renegotiated the merged company's expensive deals with the Hollywood studios, slashing the minimum guaranteed payments. The defunct ''[[Marcopolo 1|Marcopolo I]]'' satellite was sold in December 1993 to Sweden's ''[[SES Sirius|NSAB]]'', and ''[[Thor (satellite)#Marcopolo 2 (Thor 1)|Marcopolo II]]'' went to Norway's ''[[Telenor]]'' in July 1992<ref>{{cite web|url=http://www.canaldigital.com/about-us/the-canal-digital-story/|title=The Canal Digital Story|author=Canal Digital|work=canaldigital.com|access-date=21 March 2015|archive-date=21 May 2013|archive-url=https://web.archive.org/web/20130521114556/http://www.canaldigital.com/about-us/the-canal-digital-story/|url-status=dead}}</ref> after the [[Independent Television Commission]] was unable to find new companies to take over the BSB licences and compete with BSkyB. News International received 50%, [[Pearson PLC]] 17.5%, Chargeurs 17.5%, Granada 12%, and Reed International 2% of the new shares in the company.<ref>Fall for Granada. ''The Times'', 12 December 1990</ref>

By September 1991, after losses had been reduced to $30M a week, [[Rupert Murdoch]] said "there were strong financial marketing and political reason[s] for making the compromise merger instead of letting BSB die. Many of the lessons had been learnt with more than half the running cost of the combined company". Further cuts in losses were a direct result of 313,000 new customers joining during the first half of 1991.<ref>Sky TV 'in sight of breaking even'. Graham Searjeant, Financial Editor. ''The Times'', 19 September 1991</ref> By March 1992, BSkyB posted its first operating profits, of £100,000 per week, with £3.8&nbsp;million weekly from subscriptions and £1&nbsp;million from advertising, but continued to be burdened with £1.28&nbsp;billion of debt. Stockbroker firm James Capel forecast BSkyB would still be indebted in 2000.<ref>BSkyB achieves operating profit ahead of forecasts. Melinda Wittstock, Media Correspondent. ''The Times'', 10 March 1992</ref>

In the autumn of 1991, talks were held for the broadcast rights for [[Premier League]] for a five-year period, from the 1992 season.<ref>ITV's monopoly threatened by Premier League. Peter Ball. ''The Times'', 1 October 1991</ref> British television network [[ITV (TV network)|ITV]] were the current rights holders for the [[English Football League|Football League]], and fought hard to gain the new rights. ITV had increased its offer from £18m to £34m per year to obtain the new rights.<ref>Premier League unity is tested by offer of £34m. Peter Ball. ''The Times'', 18 April 1992</ref> BSkyB joined forces with the [[BBC]]<ref>BSkyB and BBC bid offers huge rewards. Peter Ball. ''The Times'', 18 May 1992</ref> to make a counter bid. The [[BBC]] was given the highlights of most of the matches, while BSkyB paid £304m for the [[Premier League]] rights, giving them a monopoly of all live matches, up to 60 per year from the 1992–93 season.<ref>Premier League kicks off with £304m TV deal. Peter Ball. ''The Times'', 19 May 1992</ref> Murdoch has described sport as a "battering ram" for pay-television, providing a strong customer base.<ref>{{cite news
  | last =Douglas
  | first = Torin
  | title = Murdoch's rise to the top
  | work=BBC News
  | date = 12 March 1999
  | url = http://news.bbc.co.uk/1/hi/special_report/1999/03/99/murdochs_big_match/167937.stm
  | access-date =5 March 2007}}</ref> A few weeks after the deal, ITV went to the High court to get an injunction as it believed their details were leaked before the decision was taken. ITV also asked the Office of Fair Trading to also investigate since it believed Rupert Murdoch's media empire via the newspapers had influenced the deal.<ref>ITV challenges football deal in High Court. Lin Jenkins.'' The Times'', 23 May 1992;</ref> A few days later neither action took effect, ITV believed BSkyB was telephoned and informed of its £262m bid, and the [[Premier League]] advised BSkyB to increase its counter bid.<ref>ITV fails to halt football deal. Lin Jenkins. ''The Times'', 27 May 1992</ref> BSkyB retained the rights paying £670m for the 1997–2001 deal, but was challenged by On Digital<ref>[https://www.theguardian.com/media/2000/may/08/bskyb.broadcasting 'Time to play hardball' by David Teather and Vivek Chaudhary investigate] 8 May 2000</ref> for the rights from 2001 to 2004, thus it was forced to pay £1.1&nbsp;billion which gave it 66 live games a year.<ref>{{cite web|url=https://www.telegraph.co.uk/finance/4454538/BSkyB-leaps-on-soccer-result.html|title=BSkyB leaps on soccer result|last=Trefgarne|first=George|date=15 June 2000|work=Telegraph.co.uk|access-date=21 March 2015}}</ref> Following a lengthy legal battle with the European Commission, which deemed the exclusivity of the rights to be against the interests of competition and the consumer, BSkyB's monopoly came to an end from the [[2007–08 in English football|2007–08 season]]. In May 2006, the Irish broadcaster [[Setanta Sports]] was awarded two of the six Premiership packages that the English FA offered to broadcasters. Sky picked up the remaining four for £1.3bn.<ref>{{cite news
  | title = Setanta joins Premiership action
  | work=BBC News
  | date = 5 May 2006
  | url = http://news.bbc.co.uk/2/hi/business/4975632.stm
  | access-date =5 March 2007}}
</ref>

====Becoming a public limited company====
In October 1994,<ref>BSkyB seeks to go into orbit with £5bn flotation. Buckingham, Lisa. ''The Guardian''; 7 October 1994;</ref> BSkyB announced its plans to float the company on the UK and US stock exchanges, selling off 20% of the company.<ref>BSkyB's float has £50m price tag. Buckingham, Lisa, ''The Guardian''; 26 November 1994</ref> The stock flotation reduced Murdoch's holding to 40 per cent and raised £900m, which allowed the company to cut its debt in half. Sam Chisholm said "By any standards this is an excellent result, in every area of the company has performed strongly".<ref>£5m a week operating profits at BSkyB. Martin Waller, Deputy City Editor. ''The Times'', 8 February 1995</ref> Chisholm became one of the world's most highly paid television executives.<ref>BSkyB trio share £3.8m bonuses. Cowe, Roger; ''The Guardian''; 15 November 1994</ref>

In 1995, BSkyB opened its second customer management centre at [[Dunfermline]], Scotland,<ref>New BSkyB centre to give Fife 1,000 jobs. Gillian Bowditch, Scotland Correspondent. ''The Times'', 6 October 1994;</ref> in addition to its original centre at [[Livingston, West Lothian|Livingston]] which opened in 1989. BSkyB entered the FTSE 100 index, operation profits increased to £155M a year, and Pearson sold off its 17.5% stake in the company.<ref>BSkyB soars to £155m as Pearson seeks stake sale. Alexandra Frean, Media Correspondent. ''The Times'', 18 August 1995</ref>

Sam Chisholm resigned from BSkyB due to a rift with Rupert Murdoch in June 1997.<ref>Murdoch row led BSkyB chief to quit. Emily Bell, Media Business Editor. ''The Observer'' (1901-2003); 22 June 1997</ref> A week later, Murdoch was quoted as saying "I cannot understand the fuss; BSkyB was grossly overpriced", which caused further rifts with the new management.<ref>Murdoch row splits BSkyB. Brown, Maggie. ''The Guardian''; 7 July 1997</ref>

In 1997, BSkyB formed a partnership with [[Carlton Television|Carlton]] and Granada to bid for the right for the new digital terrestrial network. In June, it was awarded the right to start the service, [[ONdigital]], under the condition BSkyB withdrew from the group's bid.<ref>ITV big two lead digital revolution. Eric Reguly and Carol Midgley. ''The Times'', 25 June 1997</ref> In February 2003 BSkyB wished to renegotiate its deal with MTV to reduce its payment from £20m. Chief executive Tony Ball said "We're definitely prepared to stare them down if we can't get a sensible deal. MTV, and other channels, have done particularly well out of the growth of Sky but the opportunity for savings is now there and Sky will be taking it," he added. "MTV has done extremely well out of that original deal."<ref>{{cite news|date=14 February 2003|title=Sky and MTV in cash row|url=http://news.bbc.co.uk/1/hi/entertainment/tv_and_radio/2763959.stm}}</ref> On 17 April 2003 BSkyB launched its own range of music channels [[Scuzz]], [[Flaunt (TV channel)|Flaunt]] and [[The Amp]], as part of its plan to create its own original channels for the platform.<ref>[http://www.marketingweek.co.uk/is-channel-growth-music-to-the-ears/2024338.article Is channel growth music to the ears? | Archive]. ''Marketing Week'' (20 March 2003). Retrieved on 9 December 2013.</ref> Within 18 months the channels failed to make impact, and were outsourced to the [[CSC Media Group|Chart Show Channels]] company.<ref>[http://www.marketingweek.co.uk/bskyb-hands-running-of-music-channels-to-chart-channels/2013040.article BSkyB hands running of music channels to chart channels | Archive]. ''Marketing Week'' (16 September 2004). Retrieved on 9 December 2013.</ref>

Shortly afterwards it acquired [[Sky Arts|Artsworld]], giving a majority of subscribers full access to the channel. The buyout was part of James Murdoch's strategy to improve the perceptions BSkyB which could lead to potential new subscribers. John Cassy, the channel manager of Artsworld, said: "It is great news for the arts that a dedicated cultural channel will be available to millions of households."<ref>{{cite news| url=https://www.theguardian.com/media/2005/jun/20/broadcasting.uknews | location=London | work=The Guardian | first=Owen | last=Gibson | title=Sky buys out arts channel | date=20 June 2005}}</ref>

In early 2007 Freeview overtook Sky Digital with nearly 200,000 more subscribers at the end of 2006, while cable broadcaster Virgin Media had three million customers.<ref>{{cite news| url=http://news.bbc.co.uk/1/hi/entertainment/6571203.stm | work=BBC News | title=Freeview 'overtakes Sky Digital' | date=19 April 2007}}</ref> In July 2007, BSkyB announced the takeover of [[Amstrad]] for £125m, a 23.7% premium on its market capitalisation.<ref name="BSkyB">{{cite news|url=http://news.bbc.co.uk/1/hi/business/6923517.stm|title=BSkyB agrees £125m Amstrad deal|access-date=31 July 2007|date=31 July 2007|work=BBC News| archive-url= https://web.archive.org/web/20070806235007/http://news.bbc.co.uk/1/hi/business/6923517.stm| archive-date= 6 August 2007 | url-status= live}}</ref>

BSkyB and [[Virgin Media]] announced that they had reached agreement for the acquisition by BSkyB of Virgin Media Television. Virgin1 was also a part of the deal and was rebranded as [[Channel One (British and Irish TV channel)|Channel One]] on 3 September 2010, as the Virgin name was not licensed to Sky.<ref>{{cite web|url=http://www.broadbandtvnews.com/2010/06/04/virgin-secures-new-sky-carriage-deal-after-vmtv-sale/|title=Virgin secures new Sky carriage deal after VMtv sale|publisher=Broadband TV News|date=4 June 2010}}</ref><ref>{{Cite news|url=https://www.theguardian.com/media/2010/aug/05/bskyb-virgin1-channel-one|title=BSkyB rebrands Virgin1 as Channel One|work=The Guardian |location=UK |date=5 August 2010 | first=Mark | last=Sweney}}</ref> The new carriage deals are understood to be for up to nine years.<ref>{{Cite news|url=https://www.theguardian.com/media/2010/jun/04/bskyb-buys-virgin-media-channels|title=BSkyB buys Virgin Media TV channels for £160m|work=The Guardian |location=UK |date=4 June 2010 |first=Jason |last=Deans}}</ref> The deal was completed in July 2010 and Virgin Media Television was renamed [[Living TV Group]].

In June 2010, [[Attempted acquisition of BSkyB by News Corporation|News Corporation made a bid for complete ownership of BSkyB]]. However, following the [[News International phone hacking scandal]], critics and politicians began to question the appropriateness of the proposed takeover. The resulting reaction forced News Corp. to withdraw its bid for the company in July 2011.<ref name="bbc-takeoverpulled">{{cite news|url=https://www.bbc.co.uk/news/business-14142307|title=News Corp withdraws bid for BSkyB|publisher=BBC|date=13 July 2011|access-date=13 July 2011}}</ref><ref>{{cite news|url=https://www.telegraph.co.uk/news/uknews/phone-hacking/8634176/News-of-the-World-phone-hacking-scandal-timeline.html |title=News of the World phone hacking scandal: timeline |newspaper=Telegraph |date=13 July 2011|access-date=14 July 2011 |location=London |first1=Indu |last1=Chandrasekhar |first2=Murray |last2=Wardrop |first3=Andy |last3=Trotman| archive-url= https://web.archive.org/web/20110714013912/http://www.telegraph.co.uk/news/uknews/phone-hacking/8634176/News-of-the-World-phone-hacking-scandal-timeline.html|archive-date=14 July 2011|url-status= dead}}</ref> The scandal forced the resignation of [[James Murdoch]], who was the chairman of both BSkyB and News International, from his executive positions in the UK, with Nicholas Ferguson taking over as Chairman of BSkyB.<ref>{{cite web|title=James Murdoch resigns as BSkyB chairman|url=https://www.bbc.co.uk/news/business-17599269|website=BBC News|access-date=9 December 2015|date=3 April 2012}}</ref> In September 2012, [[Ofcom]] ruled that BSkyB was still fit to hold broadcast licenses in the UK, but criticised James Murdoch's handling of the scandal.<ref>{{Cite news|url=https://www.theguardian.com/media/2012/sep/20/sky-broadcast-james-murdoch-criticised|title=Sky ruled fit for broadcast licence, but James Murdoch comes in for criticism|last1=O'Carroll|first1=Lisa|date=20 September 2012|work=The Guardian|access-date=13 July 2017|last2=Davies|first2=Lizzy|language=en-GB|issn=0261-3077}}</ref> On 28 June 2013, News Corporation was split into two publicly-traded companies; the company's publishing operations (including News International, renamed [[News UK]]) and broadcasting operations in Australia were spun into a new company known as [[News Corp]], while the company's broadcast media assets, including its 39.14% stake in Sky, were renamed [[21st Century Fox]].<ref>{{cite news|url=https://www.latimes.com/entertainment/envelope/cotown/la-et-ct-news-corp-21st-century-fox-20130628-story.html|title=News Corp. divides into two companies; 21st Century Fox is born|date=28 June 2013|newspaper=Los Angeles Times|access-date=12 April 2017}}</ref>

====European acquisitions====
On 12 May 2014, BSkyB confirmed that it was in talks with its largest shareholder, [[21st Century Fox]], about acquiring 21st Century Fox's 57.4% stake in [[Sky Deutschland]] and its 100% stake in [[Sky Italia]]. The enlarged company (dubbed "Sky Europe" in the media) would consolidate 21st Century Fox's European digital TV assets into one company.<ref>{{cite web|last1=Williams|first1=Christopher|title='Sky Europe': what is behind BSkyB's effort to buy Murdoch's European pay-TV businesses?|url=https://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/10825535/Sky-Europe-what-is-behind-BSkyBs-effort-to-buy-Murdochs-European-pay-TV-businesses.html|website=Telegraph.co.uk|publisher=Telegraph Media Group|access-date=19 June 2014|date=12 May 2014}}</ref> The £4.9&nbsp;billion takeover deal was formally announced on 25 July, where BSkyB would acquire 21st Century Fox's stakes in [[Sky Deutschland]] and Sky Italia. BSkyB also made a required takeover offer to Sky Deutschland's minority shareholders,<ref>{{cite news|url=http://uk.reuters.com/article/us-bskyb-europe-idUKKBN0FU0EE20140725 |archive-url=https://web.archive.org/web/20170315131114/http://uk.reuters.com/article/us-bskyb-europe-idUKKBN0FU0EE20140725 |url-status=dead |archive-date=15 March 2017 |title=BSkyB to pay $9&nbsp;billion to create Sky Europe |work=Reuters |date=25 July 2014 |access-date=25 July 2014}}</ref> resulting in BSkyB acquiring 89.71% of Sky Deutschland's share capital. The acquisitions were completed on 13 November.<ref name="Sky plc"/>