Regulators could block £11bn Sky bid by Murdoch
RUPERT Murdoch suffered a major setback yesterday, after the competition regulator warned it may block his plans for 21st Century Fox to take full ownership of Sky.
The Competition and Markets Authority said a takeover is ‘not in the public interest’ because it would give the Murdoch family too much control over the media – and the ‘political agenda’.
Mr Murdoch’s News UK empire owns the Sun, the Times and the Sunday Times newspapers, while his 21st Century Fox already has a 39 per cent stake in Sky.
Anne Lambert, who led the CMA probe, said the proposed £11.7billion deal ‘would result in the Murdoch family having too much control over news providers in the UK, and too much influence over public opinion and the political agenda’.
The CMA has not blocked the deal altogether. It could still potentially go ahead if 21st Century Fox agreed to spin off the Sky News channel from the rest of the TV and broadband business, or if it agreed to insulate Sky News from the influence of the Murdoch family. It will deliver its verdict in May, with Culture Secretary Matt Hancock having the final say on whether the deal should happen.
The competition watchdog’s warning comes as a major blow to Mr Murdoch, who has spent years trying to unite the satellite broadcaster with the rest of his media empire. He had to abandon his previous bid in 2011 after the News of the World phone hacking scandal threatened to derail it permanently.
A 21st Century Fox spokesman said yesterday that it was ‘disappointed’ by the competition regulator’s comments but welcomed another of its findings that a merged 21st Century Fox and Sky would be committed to meeting broadcasting standards.
‘We welcome the CMA’s provisional finding that the company has a genuine commitment to broadcasting standards and the transaction would not be against the public interest in this respect,’ the spokesman said. ‘We will continue to engage with the CMA ahead of the final report in May.’
‘Too much control over the media’