Hunt offers Murdoch a lifeline over BSkyB takeover
Jeremy Hunt has offered Rupert Murdoch an invaluable lifeline in his bid to take control of BSkyB.
The culture secretary, who was given control of the issue when Vince Cable told undercover journalists he was “at war” with the Murdoch empire, has decided to send the case to the Competition Commission but gave News Corp time to make offers which would ensure the move did not damage media plurality.
The decision follows an Ofcom report which concluded that News Corp’s purchase of the remaining 61% of BSkyB would not be in the public interest.
“Ofcom’s advice, based on the evidence and reasons set out in this report, is that it reasonably believes that the proposed acquisition may be expected to operate against the public interest since there may not be a sufficient plurality of persons with control of media enterprises providing news and current affairs to UK-wide cross-media audiences,” the report reads.
Mr Hunt said: “As a result of. my consideration of the Ofcom report and subsequent submissions from the parties involved I still intend to refer the merger to the Competition Commission.
“On the evidence available, I consider that it may be the case that the merger may operate against the public interest in media plurality.
“However, before doing so it is right that I consider any undertakings in lieu offered by any merging party which have the potential to prevent or otherwise mitigate the potential threats to media plurality identified in the Ofcom report.”
The decision follows a strong letter to the media secretary from News Corp, in which the company insisted both the government and the industry regulator are biased against it.
It read: “News is still unclear as to the extent to which the biased and prejudiced approach of the secretary of state for BIS [Business, Innovation and Skills – Vince Cable] has tainted the wider process and has requested that it be provided with copies of relevant correspondence in order to establish whether there is direct evidence of this.
“News believes that Ofcom has failed to approach the effects of this transaction with an open mind and has carried out a review process with the intention of identifying concerns,” the letter continues.
“If the secretary of state does believe, having considered News’ submissions, that he has remaining concerns about the sufficiency of plurality in the UK, News is, without prejudice to its views as to the effects of the transaction, prepared to offer UIL [undertakings in lieu] which would remedy, mitigate or prevent all of the effects adverse to the public interest which Ofcom erroneously identifies may result from the transaction.”
Speaking on the Today programme this morning, Mr Cable said he had “complete confidence” that Mr Hunt would deal with the matter in a proper way.
“I’ve complete confidence he’s going to deal with this according to due process,” Mr Cable said.
The decision comes as controversy builds over the prime minister’s meeting with James Murdoch, Rupert Murdoch’s son, at a party held by Rebekah Brooks, chief executive of News International, just days after he stripped Mr Cable of responsibility for the takeover.
Shadow culture secretary Ivan Lewis described the decision to attend the party as “extraordinary”.
