BSkyB buy Amstrad!

JohnC.

http://news.sky.com/skynews/article/0,,30400-1277892,00.html
BSkyB has agreed a £125m deal to buy set-top box maker Amstrad.

They say it will allow faster development of new products. But could this also mean an increase in crappy Amstrad boxes?

dulpit

Kahless wrote:

But could this also mean an increase in crappy Amstrad boxes?

Why are Amstrad boxes crappy? We've had 1 over a year, not 1 problem with it ever...

watty

It's strange. And a little worrying. it would enable them to be even more proprietary on the next gen of Sky boxes. Has Thomson upset them?

This is a little like Ford buying Texaco or Roadstone.

OK it's vertical Integration. Will they buy a TV maker next?


It might mean less Amstrad faults as Sky would not want that. Ever from they did stereo cassette recorders in 1970s, the problem with Amstrad was not the designs but quality control. Maybe Mr Sugar pressures them too much to ship. But Sky are going to want better quality control as they are the ones that get the calls and have to do the replacements all along.

byte

Could this ever mean an end to Sky boxes from Pace and Thomson?

Zaphod

Would Rupert abuse a dominant market position? Perish the thought.

Anyway, they'll quickly recoup £125m with 500K customers in ROI alone.




Although don't be too surprised if the cost of your subscription increases on foot of the Dirty Digger's latest acquisition:

Media tycoon Rupert Murdoch has won his battle to buy US media giant Dow Jones, publisher of the Wall Street Journal.

His News Corporation firm has secured the deal for $5.6bn (£2.7bn), or $60 a share - a 65% premium to Dow's share price before the bid was announced.

The agreement comes after Mr Murdoch received the required level of support from the Bancroft family, who hold the majority of Dow Jones' shares.

It ends the Bancrofts' 100-year stewardship of the Dow Jones.

The offer was approved by members of the Bancroft family who collectively owned 37% of Dow Jones' voting stock.

The Bancroft family controlled 64% of the shares of Dow Jones, but only about half of them needed to support Mr Murdoch's bid for it to succeed.

'Deeply gratified'

"I am deeply gratified at the level of support we have received from the Bancroft family and its trustees," said Mr Murdoch.

News Corporation already owns 100 other newspapers worldwide


"Given the Bancrofts' long and distinguished history as custodians of Dow Jones, we appreciate how difficult this decision was for some family members."

Richard F. Zannino, Dow Jones chief executive, said: "The transaction will deliver significant returns to our shareholders.

"It will also build on our recent, industry-leading earnings growth and make our company and journalism even stronger.

The Bancrofts had been deeply divided over whether to sell the Dow Jones, which includes the flagship business newspaper Wall Street Journal (WSJ).

They were concerned that Mr Murdoch's aggressive management style would interfere with the editorial integrity of the newspaper.

Under the terms of the deal, a five-member special committee will be established to assure the journalistic and editorial integrity and independence of Dow Jones' publications and services, including the WSJ.

'Interventionist proprietor'

Andrew Neil, a former editor of the News Corporation-owned Sunday Times, told BBC Radio Five Live that Mr Murdoch was a hands-on proprietor.

"He tries to pick like-minded editors, editors who share, broadly share his world view of things," said Mr Neil.

"But when there is something he feels strongly about or when some of his business interests are at stake, he leaves you in no doubt what he wants you to do.

"He is an, I wouldn't say interfering, I would say he's an interventionist proprietor when he wants to be, but I guess, you know, if you own the title, then I guess you're allowed to intervene."

News Corporation already owns 100 other newspapers worldwide, as well as television stations and film studios and the purchase of the Dow Jones will add to his growing media empire.

Its bid for Dow Jones was first announced in May.
BBC NEWS

Thomas_S_Hunterson

Yea, it's an interesting situation now that the Bancrofts have sold out. I have to say, I'm a bit disappointed in them for doing it.