Culture secretary Jeremy Hunt said he expects his decision on whether to allow the proposed takeover of British DTH broadcaster BSkyB by Rupert Murdoch’s News Corporation to be “judicially challenged” whatever decision he makes.
The decision passed to…
Culture secretary Jeremy Hunt said he expects his decision on whether to allow the proposed takeover of British DTH broadcaster BSkyB by Rupert Murdoch’s News Corporation to be “judicially challenged” whatever decision he makes.
The decision passed to Hunt after Business Secretary Vince Cable was stripped of his responsibilities for media regulation, after he was recorded telling undercover reporters he had “declared war” on Murdoch’s media empire.
Speaking at a debate on the future of the media at the London School of Economics in mid-January, Hunt said he was focused on whether to refer the matter to the Competition Commission, but refused to be drawn on the timetable for the decision.
Two weeks before that, a report into the takeover was delivered to Hunt. Regulator Ofcom said it had handed over the document, but refused to give details of the contents.
Murdoch’s move to buy the 61% stake it does not already own in the British broadcaster was first revealed in June when BskyB’s board said it had rebuffed an initial approach worth 700 pence per share, arguing the offer significantly undervalued the business. It later called for an offer in excess of 800p a share.
Despite this difference over the company’s valuation, the two parties agreed to begin work on the regulatory process required for a tie-up. To that end, News Corp formally notified the European Commission on November 3 of its takeover bid and in late December the EC gave it approval to the plan.
News Corp currently owns two of the largest newspapers in the UK, The Times and The Sun, and critics of the planned takeover argue that having full ownership of the country’s largest pay TV operator would give the media giant too much power.
The Conservative-led coalition government has been split on its approach to the proposals, with Conservative ministers seen to be more relaxed over News Corp’s move than the Liberal Democrats. The opposition Labour party has also expressed concern over the deal.
