Murdoch BSkyB takeover moves closer
Rupert Murdoch took a step closer to taking full control of satellite broadcaster BSkyB today after the UK government provisionally accepted plans to hive off Sky News as a separate company.
Culture Secretary Jeremy Hunt has agreed beefed-up proposals that will see the news station run as an independent company to allay fears that the deal would give Mr Murdoch’s News Corporation too much control of the media.
The consultation has been extended to midday on Friday July 8, after which Mr Hunt will decide whether to wave through the merger once and for all or refer it to the Competition Commission.
News Corp, which also owns the Sun and the Times newspapers in the UK, wants to buy the 61% of shares in the company it does not already own.
It last year offered 700p a share, valuing the company at £12.3bn (€13.6bn), but the board told Mr Murdoch to come back with a higher offer.
The revised plans revealed today by Mr Hunt would make sure that Sky News has an independent director with senior editorial experience and a monitoring trustee to ensure News Corp complies with the deal.
Sky would also have to continue to “cross-promote” Sky News on its channels.
News Corp’s bid has been fiercely opposed by an alliance of rival media firms, including the publishers of the Guardian, the Daily Mail and the Daily Telegraph, who have previously said they were willing to take legal action to block the deal.
