The competition watchdog has confirmed it will assess whether Rupert Murdoch would wield too much influence over editorial decisions at Sky News as part of its investigation into the billionaire’s £11.7bn Sky PLC (LON:SKY) takeover bid.
After a three month investigation by Ofcom, culture secretary Karen Bradley referred the deal to the Competition and Markets Authority for a full inquiry last month.
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The CMA has now outlined the scope of that probe which will scrutinise how the deal would affect UK media plurality and broadcasting standards if it were to receive the green light.
Murdoch already owns 39% of Sky and a key area of focus for the six-month inquiry will be how his and his family’s ability to shape editorial or commercial decision at Sky News would change if they take full control.
The regulator has also said it will look at how their ability to “influence the political agenda” may change after a takeover, alongside a more general assessment of how any deal would affect the number and variety of British media outlets, given that Murdoch already owns the The Sun and The Times newspapers.
READ: Sky bid officially referred to CMA
The CMA will also scrutinise whether or not 21st Century Fox (NASDAQ:FOXA) and Sky have a “genuine commitment” to maintaining UK broadcasting standards, while corporate governance and treatment of employees will also be assessed.
"The CMA will use its extensive experience of investigating different issues in a wide range of sectors to thoroughly and impartially investigate the proposed takeover of Sky Plc by 21st Century Fox,” said CMA panel chair Anne Lambert in a statement.
"Once the investigation is complete we will report back to Karen Bradley for her to make a final decision."
Sky shares were flat at 918p.