Sex scandals threaten £12bn Sky takeover
rUPerT murdoch’ s £11.7bn bid to take over Sky may be derailed by a sexual harassment scandal brewing in America.
The claims have engulfed US television station Fox news, which is owned by murdoch, sparking concerns the fallout could thwart his bid to snap up the 61pc of Sky he does not already own.
Prosecutors are understood to be investigating whether payments made to alleged victims broke securities laws as they were not declared in annual reports or to investors in 21st century Fox, the network’s parent company.
roger Ailes, the founder and former chairman of Fox news, was fired last summer following allegations he harassed former colleagues, including former star presenter megyn Kelly. Prosecutors are focusing on a payment made to Laurie Luhn, a former Fox news talent booker, who was given £2.5m by the channel in 2011 in exchange for her silence.
Particular attention is also being paid to allegations against Fox news pundit Bill O’reilly. Five women received payouts totalling about £10m in exchange for agreeing to not pursue litigation or speak about their accusations.
it is the latest scandal to hit the murdoch family, which was forced to abandon its bid to take back full control of Sky in 2011 amid allegations of phone hacking at its Sunday paper, the news Of The World. James murdoch, the youngest son of rupert murdoch, was ultimately forced to oversee the closure of the paper as well as the withdrawal of the then £7.8bn bid.
The 44- year- old resigned as chairman of Sky in 2012 after Ofcom said that he ‘repeatedly fell short’ of the conduct expected of him.
reports of a federal probe at Fox comes as the British regulator decides whether 21st century Fox would be a ‘fit and proper’ owner for Sky. european regulators have already given their approval to the deal, saying it ‘raised no competition concerns’.
But last month, culture Secretary Karen Bradley confirmed she was referring the takeover to Britain’s communications regulator Ofcom amid concerns the company would control too much of Britain’s media.
As well as owning 39pc of Sky, murdoch owns The Times and The Sun newspapers through his news corp business.
Ofcom is carrying out a public interest test on the deal. if it has concerns by the deadline of may 16, Bradley will ask 21st century Fox to address any issues and decide whether to accept what it suggests. She could then send the bid to the competition and markets Authority for a full review, which could take up to six months.
A 21st century Fox spokesman said: ‘We take our regulatory and compliance obligations very seriously. We have a strong record of compliance in all our markets.
‘We are confident that our proposed transaction to acquire the shares of Sky we don’t already own will be approved following a thorough review by regulators.’