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Murdoch opposes TV tie
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October 15, 1999: 9:28 a.m. ET
Media mogul plays down speculation over BSkyB-Canal Plus merger
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LONDON (CNNfn) - Media mogul Rupert Murdoch said Friday he opposed any merger between Britain's BSkyB satellite TV business -- in which his company is the largest stake holder -- and French pay-TV market leader Canal Plus.
Analysts have downplayed a deal between the two after French conglomerate Vivendi bought a 24.5 percent stake in BSkyB and 49 percent of Canal Plus during a $2.6 billion summer spending spree.
Murdoch's News Corp. is still the largest BSkyB shareholder, with a 40 percent stake. "I would be opposed to it," said Murdoch of any merger plan, though he said the firms could co-operate in areas such as film production.
He also played down reports that he plans to meet Vivendi chairman Jean-Marie Messier next week, though he said the pair would probably meet "before Christmas."
The remarks did little to help BSkyB's shares Friday, as they dipped 1.4 percent in a weak London market despite beating third-quarter earnings and sales targets. Vivendi traded down 3.2 percent and Canal Plus was off 1.4 percent.
BSkyB, which is also the U.K. market leader in digital TV, posted a 13.6 million-pound ($22.4 million) loss compared with a profit of 52 million a year earlier.
BSkyB's rivalry in the digital market with On Digital pushed both companies to offer free set-top decoder boxes for their services to boost acceptance.
The move has pushed both companies ahead of their sales forecasts, with BSkyB passing 1.8 million digital customers and On Digital passing 600,000 last week. The giveaway of the boxes, which previously retailed for around $400, has inevitably eaten into profit. 
-- from staff and wire reports
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Vivendi
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On Digital
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