BSkyB (LON:BSY) Sells 10.4 Percent Stake in ITV PLC (LON:ITV)

After a lengthy battle, BSkyB (LON:BSY) decided not to pursue more appeals concerning its acquisition of 17.9 percent of competitor ITV PLC (LON:ITV) in order to keep it from becoming to big and strong of a competitor.

Consequently they were required to sell off 10.4 percent of ITV to meet the guidelines required under British law. BSkyB could have continued with their appeals, but it was communicated with them that it probably be futile, as there was no underlying reason authorities could see that would cause them to win the appeal.

But in reality, the acquisition of the shares of the company kept ITV from growing as it could have over the last couple of years, allowing BSkyB to hold back their growth while awaiting the many appeals decisions.

Many stood on the sidelines concerning ITV because of the economy and slower ad sales, along with not know with certainty which way the rulings would eventually go.

Sky did say they were going to keep their allowed ownership stake in ITV over the medium term, which is just under 7.5 percent.

The company took a £350 million loss in the deal, as it placed the shares with Morgan Stanley for £196 million. Morgan Stanley already sold them to institutional investors.