Murdoch’s mega bid to gobble up Sky
RUPERT Murdoch’s £11.7billion takeover bid for Sky should be put before regulators, critics said.
The pay-TV giant’s bosses yesterday agreed an offer from the media mogul’s 20th Century Fox for the 61% it doesn’t already own.
It comes five years after Murdoch’s last attempt to buy Sky failed in the wake of the phone hacking scandal at the now defunct News of the World. But the role of Murdoch’s son, James, as both chairman of Sky and chief executive of Fox, has raised questions.
Labour’s Deputy Leader Tom Watson called on Culture Secretary Karen Bradley to refer the deal to industry watchdog Ofcom.
He said the move raises issues about media power being concentrated in too few hands, and he questioned whether Rupert and James Murdoch are “fit and proper persons to run a broadcaster”.
He added: “Fox is attempting to finalise this deal as the Christmas break approaches – but there is still time to intervene.”
The takeover, valuing Sky at £18.5bn, would create a media colossus. Sky has 22 million customers in the UK, Ireland, Italy, Germany and Austria, annual revenues of £12bn, the rights to a raft of live sports, and 30,000 staff.
Fox has 1.8 billion subscribers around the world, 300 channels and owns Ice Age, pictured, and Avatar movie maker 20th Century Fox Films.
Fox said the deal would create “a global leader in content creation and distribution”. Martin Gilbert, Sky’s deputy’s chairman, said it would ensure the firm “remains at the forefront of Europe’s creative industries.” But smaller shareholders claim Fox’s £10.75-a-share bid is too low.
It is 40% above Sky’s share value before Fox made the first of two unsuccessful proposals, but its stock fell in the wake of June’s Brexit vote and competition worries.
The deal may also be probed by the European Commission.
Former business secretary Sir Vince Cable said: “The minister should call in the takeover and start the process of independent investigation into the impact on plurality and competition.
“The takeover would strengthen even further the grip of a major media owner on UK media.”
Fox promised to hand Sky shareholders a special dividend if the deal isn’t done by the end of next year.