End game: Murdoch makes his move on Sky
By Peter Wozniak
Rupert Murdoch’s News Corp has applied for clearance from the European Commission for its planned takeover of BSkyB – setting in motion crucial decisions for the future of the UK’s media industry.
The application means that the Commission now has 25 days to conduct an investigation into whether the takeover will harm competitiveness.
Media groups are urging the business secretary Vince Cable to intervene and block the move, which he can now do on public interest grounds if he deems the takeover a threat to the plurality of the British media.
It is understood that Mr Cable will make a decision in the next two weeks.
Meanwhile the Commission will decide in its initial investigation whether or not News Corp’s plans to increase its share in the broadcaster from 39% to total control warrant a longer probe that could last 125 days.
Newspapers and broadcasters opposed to the encroaching influence of Mr Murdoch’s companies – including the groups which own the Telegraph, the Daily Mail, the Guardian, the BBC and Channel 4 – recently formed an alliance to pressure the government into stopping the takeover.
The business secretary has so far remained silent, but News Corp’s application to the Commission means Mr Cable may have to state his position soon.
Mr Murdoch’s companies already own four national newspapers. If the takeover of Sky goes ahead, his empire will be able to comfortably outspend its nearest competitor, the BBC.
Negotiations on the details of the takeover are still not confirmed, with BSkyB’s board asking for an improved offer from News Corp’s initial punt of 700 pence a share in June.
The move for regulatory approval signals the deal is its final stages.
