BSkyB's share price fell by 7 percent at the opening of trading to under
700p – lower than the amount bid originally by Rupert Murdoch's News
Corporation in June 2010 – and the lowest level since last autumn.
James Murdoch is rethinking News Corp's strategy in light of the recent closure of News of the World.
The scale of the fall was a shock to many, given the share
price drop late last week and underlines the feeling in the market that
the chances of News Corp getting total ownership of BSkyB, which owns
Sky News, have severely receded.
Following the nod from the Culture Secretary Jeremy Hunt at the
start of the month, the market had been gearing up for a takeover.
By the start of last week, BSkyB's share price hit 850p.
But as the phone hacking scandal escalated, the stock lost 12% of
its value across last week, wiping over £1bn off the company's market
value.
