Murdoch’s £12bn Sky bid faces probe over influence

BEN WOODS AND JON VALE

Rupert Murdoch tried to take over Sky through NewsCorp in 2011.

concerns because, in Ofcom’s view, the transaction may increase members of the Murdoch Family Trust’s ability to influence the overall news agenda and their ability to influence the political process and it may also result in the perception of increased influence.

“These are clear grounds whereby a referral to a phase two investigation is warranted – so that is what I am minded to do.”

Ms Bradley said Sky and Fox could make representations to her before she reaches a final decision, with a deadline of July 14.

However, she was “minded not to refer” the bid to a phase two investigation in relation to a “genuine commitment to broadcasting standards”.

Her comments came as Ofcom said the merger would not stop Sky from holding a broadcasting licence, despite concerns over “significant failings” in the corporate culture at Fox News.

While the broadcast regulator made clear it was not its role to investigate allegations of sexual and racial harassment at Fox News, it said the US news giant’s response to the claims had been “mixed”.

It also flagged Fox News had only “recently rectified” a failure to put in place regulatory compliance procedures.

Focusing on the sexual harassment complaints, the regulator said: “Some allegations were handled swiftly. But Fox was slower to deal with Bill O’Reilly, its star anchor.

“To have a concern about fitness and properness we would need to see evidence of misconduct in the parent company Fox.

“However, we have no clear evidence senior executives at Fox were aware of misconduct before it was escalated to them. And senior executives put in