Spinoff not likely to cover Sky

WELLINGTON - Sky Network TV, indirectly part of Rupert Murdoch's global satellite pay-TV empire, is unlikely to form part of his plans to spin the operations off into a separate entity.

Mr Murdoch's News Corp expects to begin spin-off plans for the company, unofficially known as Platco, as early as this week.

Sky NZ, which like others in Mr Murdoch's pay-TV stable is transforming to digital transmission, would appear to fit neatly into the Platco group.

But because Sky TV is only 49 per cent owned by Independent Newspapers, which in turn is 49.3 per cent owned by News Ltd, it cannot be folded into the planned international group.

"There have been no discussions about including it, so I guess it won't be in," Independent Newspapers' managing director Mike Robson said.

He said what News did with its shareholdings was entirely its business, but News would have to have full ownership of Sky TV to be able to put it into Platco.

Analysts in New Zealand said News had far bigger problems sorting out the Asian and European ends to the deal than to worry about Sky NZ, which is capitalised at just under $1.5 billion. They said if Platco got up and running, then Mr Murdoch could look at taking over Sky NZ in a couple of years.

Analysts said Platco could be valued at over $US40 billion ($85 billion).

Ironically, Platco will probably trade under a Sky brand name - related to BSkyB, not Sky NZ.

A News Corp spokesman was reported as saying the new company - lumping together StarTV system in Asia, BSkyB in Britain, TV Guide International, News Digital Systems and satellite operators in Europe, Asia and Latin America with a total reach of 100 million homes in 60 countries - would probably incorporate the word Sky in its name.

- NZPA