Ofcom probes Sky takeover
RUPERT Murdoch’s £11.7billion bid to take full control of Sky will be investigated by regulators amid concerns over broadcasting standards and whether it will give his companies too much control of Britain’s media.
The mogul’s US movie and TV giant 21st Century Fox announced its bid to buy the remaining 61 per cent of the FTSE 100 satellite broadcaster that it does not already own last December. The 1075p-a-share offer values Sky at £18.5billion.
Murdoch’s previous attempt to buy the business had collapsed in 2011 when his UK newspaper operation was engulfed in a phone-hacking scandal.
Culture Secretary Karen Bradley, who said earlier this month she was “minded to” refer the deal to Ofcom, was not persuaded by representations from Fox to dismiss her concerns regarding media plurality and commitment to broadcasting standards.
Ofcom, led by chief executive, Sharon White, will now have 40 working days to study the deal, until May 16.
The regulator will also give its verdict on whether Murdoch’s company is a “fit and proper” holder of a broadcasting licence.
Murdoch owns The Times, The Sunday Times and The Sun newspapers through a separate company, News Corp. His son James is chief executive of Fox as well as chairman of Sky. Fox said it is “looking forward to working with UK authorities in their reviews of our proposed transaction to combine with Sky”. It added: “We are confident that a thorough review of our track record over 30 years will underscore our commitment to upholding high broadcast standards, and will demonstrate that the transaction will not result in there being insufficient plurality in the UK. “The media market has changed dramatically in recent years, as has our business. We believe our proposed £11.7billion investment will benefit the UK’s creative industries. We look forward to continuing to work with all stakeholders and are confident that the transaction will be approved.” Bradley must clear the bid if Ofcom finds no issues. But if the regulator raises concerns, she must decide whether to accept undertakings from Fox to address them.