The City roundup video: Sky shares falls over Premier League rights auction
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Version 0 of 1. Don't miss out on the goings on in the business world, with our daily round-up of the biggest news from the City. Sky shares fell almost 2 per cent today after City analysts sounded the alarm over the upcoming Premier League rights auction. Football is the cornerstone of Sky’s business and analysts warned that the broadcaster needs to win the majority of games on offer or face missing its financial targets. This is easier said than done as it faces competition from an increasingly pushing BT and possible bids from new entrants such as Google. The Premier League said last week that it is also selling the rights to more games than ever, which will force Sky to shell out even more. The auction is a sealed envelope affair, meaning bidders can’t see rival offers, and Sky will likely put in a big, knock-out bid as it tries to guarantee it gets what it needs. The combined fear of Sky not winning enough games and overpaying for the matches it does get has led investors to conclude that the broadcaster is not the safest place to put money right now. |