Murdoch must offload Sky News to get green light for £11.7bn takeover
Sky News must be sold if Rupert Murdoch’s 21st Century Fox is to secure approval for an £11.7 billion takeover of broadcaster Sky.
The culture secretary Matt Hancock said yesterday that in order to address media plurality concerns flagged by the Competition and Markets Authority, he favours “divest- ing Sky News to a suitable third party”.
The CMA raised the possibility of “increased influence of the Murdoch Family Trust over public opinion and the UK’S political agenda”, should Fox get its hands on Sky News.
Mr Hancock told Parliament he will now consult over the next 15 days to finalise details of the plans to divest Sky News before making a final decision.
But he said if terms of a sale of Sky News cannot be agreed, the “only effective remedy now would be to block the merger altogether”.
A separate £22bn bid for Sky from US broadcasting giant Comcast was cleared by Mr Hancock, setting the stage for a bidding war with Fox.
Rupert Murdoch’s Fox is attempting to buy the 61 per cent of Sky that it does not already own, but the bid has been complicated by competition concerns, media plurality fears and rival offers.
Mr Hancock said: “I agree with the CMA that divesting Sky News to Disney, as proposed by Fox, or to an alternative suitable buyer, with an agreement to ensure it is funded for at least ten years, is likely to be the most proportionate and effective remedy for the public interest concerns that have been identified,.”
But he added that he wants to ensure the sale of Sky News would ensure it remains financially viable over the long term; is able to operate as a major Uk-based news provider, and is able to take its editorial decisions independently.
Disney has separately struck a deal to buy Fox’s entertainment assets, including its stake in Sky. Fox said that it has already submitted proposals to divest Sky News to Disney.