--Soccer Club Takes Ownership of TV Venture
--Manchester United Acquired ITV's Stake in 2007
--Deal Fullfills Goal of Gaining Full Control of Production,
Distribution Capabilities
(Adds details in paragraphs two, three and five. Updates share
price in paragraph two.)
By Tess Stynes
Manchester United Ltd. (MANU) acquired British Sky Broadcasting
Group PLC'S (BSY.LN) one-third minority stake in Manchester United
Television, part of the soccer team's goal of gaining complete
ownership of the content production and distribution capabilities
of the unit.
Manchester United shares were up 2.3% at $15.86 in recent
trading. The stock is up 13% from its initial public offering price
of $14 in August.
Financial terms of the deal--which gives Manchester United
ownership of the television company--weren't disclosed.
Manchester United Television was formed as a venture between the
team, BskyB, and ITV PLC (ITVPF, ITV.LN, ITV.TH) in 1998.
Manchester United acquired ITV's one-third stake in November
2007.
The famed U.K.-based soccer club is owned by the Glazer family,
headed by American businessman Malcolm Glazer. The role of the
Glazers, who took on debt to purchase the team for $1.47 billion in
2005, stirred the ire of some fans, who worried the new debt would
restrict the team's ability to keep and attract top talent. In an
effort to reduce its debt load, Manchester United went public on
the New York Stock Exchange in August.
BSkyB is 39% owned by News Corp. (NWSA, NWS.AU, NWS).
News Corp also owns Dow Jones & Co., publisher of this
newswire and The Wall Street Journal.
Write to Tess Stynes at Tess.Stynes@dowjones.com
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