The UK regulator is about to investigate Murdoch 21st Century Fox Sky takeover. The power issue under investigation will be resolved on the 16 of May.
16 March, AtoZForex – The UK government has stated on Thursday it would transfer Rupert Murdoch’s planned takeover of EU pay-TV group Sky to the regulators.
Murdoch 21st Century Fox Sky takeover
Specifically, the UK authorities will refer the planned takeover to regulators to decide whether the deal was in the public interest. The British government said on Thursday it would refer Rupert Murdoch’s planned takeover of European pay-TV group Sky to regulators to decide if the deal was in the public interest. Murdoch’s U.S. TV business Twenty-First Century Fox owns as much as 39 percent of Sky. It has informed the EU commission of its 11.7 billion pounds ($14.3 billion) bid in the beginning of March. This has provided the UK government with an opportunity to interfere.
Karen Bradley, the Media Secretary, has told parliament it was vital and adequate to seek advice from the UK regulator Ofcom. The regulator is set to decide whether the deal would provide Murdoch with too much control of the UK media. Moreover, Ofcom will determine whether the new owner would stay committed to broadcasting norms.
Ms. Bradley has stated she gave Ofcom 40 days to investigate the issue. The regulator will deliver the decision report by 16th of May. Moreover, she has mentioned that Ofcom would evaluate whether Murdoch’s firm was a “fit and proper” holder of a broadcasting license.
Too much power for Murdoch?
Twenty-First Century Fox stated it was looking forward to working with the authorities of the UK in the probe of the deal. Moreover, the company has commented:
“We are confident that a thorough review of our track record over 30 years will underscore our commitment to upholding high broadcast standards. It will demonstrate that the transaction will not result in there being insufficient plurality in the UK.”
Additionally, the Murdoch family have never shown signs of ambition to take full control of Sky. This in spite of the previous unsuccessful attempt five years ago. That time, their UK newspaper business has been involved in a phone-hacking scandal.
A number of opposition lawmakers are resisting the deal. Their argument is that Murdoch would possess too much power if he had full control of a pay-TV group. As a fact, a pay-TV group is now present in over 12 million British and Irish homes.
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