The proposed takeover of Sky PLC (LON:SKY) by Twenty-First Century Fox Inc (NASDAQ:FOXA) has, as anticipated, been referred to the Competition and Markets Authority (CMA).
Both parties have pledged to cooperate with the CMA, but the Rupert Murdoch-controlled US company sounded a bit miffed at the referral, saying it wrote to the Culture Secretary Keren Bradley yesterday expressing disappointment that she had changed her mind about recommending an investigation, and informing her that it did not intend to make further representations of its case.
READ: Murdoch's bid to buy Sky to be referred to UK competition regulator by culture secretary
The US company encouraged Bradley to make a prompt referral to the CMA, and in this regard it has got its way – as it usually does in its engagements with the UK government.
There'll be a full probe into Rupert Murdoch's £11.7bn takeover bid for Skyhttps://t.co/XJreHnImLt pic.twitter.com/tj7OtvFePs
— Mirror Politics (@MirrorPolitics) September 14, 2017
Bradley recommended the CMA step in on the grounds of “media plurality” – essentially, concerns that Rupert Murdoch would have an even stronger stranglehold on UK media outlets – and a genuine commitment to broadcasting standards.
Initially she said that any investigation would not be on the grounds of broadcasting standards, but evidently her mind was changed by pressure from the likes of campaign group Avaaz and a group of high-profile MPs led by former Labour Party leader Ed Miliband.
Murdochs used to say 39% doesn't give control of Sky. Now want to be judged not on record of Fox which they control but Sky which they don't https://t.co/KyiDfmZs8M
— Ed Miliband (@Ed_Miliband) September 14, 2017
Decision a blow to Fox
Murdoch’s News International company was the company behind the phone-hacking scandal that precipitated the closure of Sunday newspaper News of the World, while the US company’s Fox News channel does, to put it mildly, divide opinions markedly on its journalistic integrity and impartiality.
The decision will be a blow to Fox, which owns 39% of Sky.
The company said it expects the investigation of the £11.7bn deal should be done and dusted by June 2018.