As News Corp. Increases Its Stake In Premiere, Additional Board Seats Are Sought
By David Kaplan - Mon 14 Apr 2008 08:46 PM PST
Earlier this month, News Corp (NYSE: NWS). announced it was upping its 22.7 percent stake in Munich-based subscription TV network Premiere. Reports estimated that News Corp. was looking to hold around 25- or 26 percent of the company. A WSJ piece now details why: As one of Europe’s largest pay TV markets, News Corp. regards its absence there as a situation in need of correcting. Gaining control of Premiere represents an immediate way for News Corp. to enter that market.
As for the modest increase in its holding, News Corp. just wants enough to prevent others from controlling Premiere. It doesn’t want to own it outright. German law would require it to bid for all of Premiere’s shares if its holdings were to hit 30 percent.
News Corp. also is expected to seek seats on Premiere’s board, according to WSJ’s main source, with a second unidentified individual adding that Premiere has agreed grant the company two seats. Premiere has been planning on expanding its board from three to six members. A final decision on expanding the board and allowing News Corp. two seats could is expected to happen at a shareholders meeting in June.
Posted in: Companies, News Corp, BSkyB, Countries, Europe, Germany, Media, TV, Satellite
Tags: premiere,
