Yahoo Finance Fox's Sky takeover bid could be referred to competition watchdog
Rupert Murdoch’s takeover of Sky may be referred for a full investigation after its regulators said the deal raised concerns about the amount of influence the media mogul would wield over the country’s media.
“On the basis of (regulator) Ofcom’s assessment I confirm that I am minded to refer to a Phase 2 investigation on the grounds of media plurality,” media secretary Karen Bradley told lawmakers.
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“The reasoning and evidence on which Ofcom’s recommendation is based are persuasive – 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.”
Murdoch’s Twenty-First Century Fox agreed to buy the 61 per cent of Europe’s biggest broadcaster it does not already own for $14.8 billion in December.
Last week, two regulators submitted their findings to the government after being asked to look into whether Fox would have too much control of the media, and whether it would be committed to upholding broadcasting standards if the deal went ahead.
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The government said on Thursday it did not think the deal raised any problems around the issue of broadcasting standards.
Ofcom had no concerns about Fox’s genuine commitment to broadcasting standards – a second test for a deal, she said.
Shares in Sky rose after the statement and were trading up 3 per cent at 986 pence at 1110 GMT.
