Rupert Murdoch and his wife Jerry Hall (Reuters)
New Delhi: Britain intends to subject Rupert Murdoch’s takeover of European pay-TV group Sky to a lengthy in-depth investigation after finding the $14.8bn deal risks giving the media mogul too much power over the news agenda.
Media Secretary Karen Bradley said she was persuaded that Twenty-First Century Fox’s bid could give the Murdoch family too much influence over the media, after regulator Ofcom assessed the impact of the deal.
“The proposed entity would have the third largest total reach of any news provider - lower only than the BBC and ITN - and would, uniquely, span news coverage on television, radio, in newspapers and online,” Bradley said.
Murdoch and his family have long coveted full control of Sky, despite the damaging failure of a previous attempt in 2011 when their British newspaper business became embroiled in a phone-hacking scandal which forced them to abandon that bid.
A public inquiry into the affair revealed deep ties between Murdoch and the political establishment, making the renewed bid potentially toxic for Prime Minister Theresa May’s government which is fighting for survival after losing its majority.
Bradley had asked regulators to examine whether Fox would have too much control of the media, and whether it would be committed to upholding broadcasting standards if it was allowed to buy the satellite company which broadcasts in Britain, Ireland, Germany, Austria and Italy.
Fox said it was disappointed by the government’s rejection of its plans to maintain editorial independence of Sky News, and said a full investigation could push the deal’s completion date back to next June.
“We will continue to work constructively with the UK authorities,” it said.
The government said yesterday Ofcom had no concerns about Fox’s genuine commitment to broadcasting standards but wanted to look further into the impact a deal would have on the range of media providers in the country.Ofcom also carried out a separate investigation as to whether a Fox-controlled Sky would be a ‘fit and proper’ owner of broadcast licences in Britain.
