Fox’s Sky deal faces scrutiny

UK media regulator Ofcom is set to investigate the £11.7bn (US$14.8bn) deal that could see 21st Century Fox taking full control of European satcaster Sky.

Rupert Murdoch

Sky agreed to sell the remaining 61% of its business not owned by Fox late last year, following a previous attempt aborted in 2011 by owner Rupert Murdoch after the phone-hacking scandal that hit his newspaper empire.

UK culture secretary Karen Bradley said she was “minded” to refer the deal to regulators, who will look into concerns over media plurality and Fox’s intentions to maintain broadcasting standards.

They would have 40 days to explore public interest concerns and, providing no issues are raised, Bradley could then give the all-clear. Fox will otherwise have to address any concerns.

Bradley, who has 10 working days from today to make the final decision over regulator involvement, said she had contacted the parties involved due to “concerns that there may be public interest considerations.”

The arrangement is also subject to European regulator clearance, although the similar deal six years ago was cleared.

Past concerns centred on James Murdoch, who oversees 21st Century Fox and has served as Sky chairman since January.

He previously worked across the parent company’s newspaper interests but has lacked widespread shareholder support at Sky of late, requiring Fox support to return him to his position in October.

Leading analysts have previously said Fox is likely to succeed in the proposed takeover, with programme licensing and development “synergies” at the heart of the deal.