Please wait...
Please wait...

Fox, Sky deal inquiry delayed

The forthcoming UK general election has delayed media regulator Ofcom’s investigation into 21st Century Fox’s proposed takeover 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 executive co-chairman Rupert Murdoch after the phone-hacking scandal that hit his UK newspaper empire.

UK culture secretary Karen Bradley last month referred the £11.7bn (US$15bn) deal to Ofcom to investigate potential public interest concerns, with a deadline to report back to her set for May 16.

However, UK prime minister Theresa May’s surprise announcement of a snap election on June 8 has forced Bradley to reconsider the deadline.

Bradley wrote to Ofcom and the Competition and Markets Authority (CMA) last week to extend the period within which they must report to her on the proposed merger to June 20.

Once the reports have been submitted, Bradley could give the deal the all-clear or raise concerns, which Fox will then have to address.

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

Earlier this month the plan was given the green light by the European Commission’s competition authorities, which said its market investigation had found the proposed transaction “would raise no competition concerns.”

However, rival broadcasters, media pressure groups and politicians are also stepping up efforts to stop the deal, fearing it would hand too much buying power to Murdoch.

RELATED ARTICLES

Please wait...