News Corp. Nears BSkyB Takeover

LONDON: News Corporation has moved a step closer to taking full control of British satellite giant BSkyB, with Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt, asserting that there has been no new evidence to change his previous conditional approval of the merger.

Secretary Hunt today published the results of the public consultation on News Corp.’s proposed takeover of the platform. He had given his provisional approval to the transaction based on the condition that Sky spin off Sky News as a separate company. "The consultation produced no new information to cause Ofcom and the OFT to change their earlier advice that the undertakings in lieu addressed Ofcom’s media plurality concerns and were viable for ten years," a statement from Hunt’s office said.

However, Hunt has initiated a new consultation after proposing a new set of conditions, including the need for Sky News board meetings to include an independent director with senior editorial and/or journalistic expertise if decisions on editorial matters are to be made; the appointment of a monitoring trustee whose main role is to ensure that News Corp. complies with the undertakings in the run up to spin-off; a requirement for Sky to continue to cross-promote Sky News on its channels; and a requirement for Sky News’ Articles of Association to be approved by the Secretary of State.

“I am aware of the huge interest in the proposed merger and am grateful to those who responded to the consultation," Hunt said. "I have considered carefully the points raised and, as at all steps in this process, taken advice from the independent regulators. The regulators have confirmed that the proposed undertakings are still sufficient to ensure media plurality. I could have decided to accept the original undertakings but a number of suggestions were made in response to the consultation which could further strengthen the undertakings, particularly around editorial independence, business viability and the articles of association. I am therefore proposing some changes to the undertakings and I will now hold a further public consultation.”

The consultation period on the revised undertakings will run until the end of next week.