News Corp edges closer to Sky deal

The Department for Culture, Media and Sport is believed to be another step closer to approving News Corporation's takeover of BSkyB, though the process is likely to run into July.

Rupert Murdoch: News Corp chairman
Rupert Murdoch: News Corp chairman

News Corp and the DCMS are understood to have agreed undertakings to siphon off Sky News as an independent company but the proposals will reportedly be put out to a further one week consultation before a final decision is made.

The Financial Times reports that News Corporation and broadcast regulator Ofcom, the DCMS and the Office of Fair Trading have come to agreement about the "substance" of the undertakings.

In March culture secretary Jeremy Hunt said he was "minded" to accept undertakings where by Sky News would become an independent company with a long term carriage agreement to provide news for Sky.

There has been a significant amount of opposition to the deal, and concern the independent Sky News would not be economically viable, and a consultation into the undertakings proposed in March received more than 38,000 responses.

Hunt was given responsibility for the merger in December after business secretary Vince Cable was recorded by reporters from The Daily Telegraph saying he had "declared war" on News Corp chairman Rupert Murdoch.

It emerged that News Corp was looking to buy the 60.9% of Sky it does not own in June last year when Sky's independent directors said they would reject a proposed offer of 700p a share.

The independent directors said they would recommend an offer of 800p and since News Corp's interest was revealed Sky's shares have shot up from under 600p a share in June 2010 to 832.50p a share, up 4%, this morning.

A spokeswoman for News Corp said it continues to engage with the regulatory process and a spokeswoman for the DCMS declined to comment.

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Evian baby Spider-Man 'rescues' fans with Twitter answers

Evian baby Spider-Man 'rescues' fans with Twitter answers

Evian has launched the second stage of its popular global 'Amazing Baby & Me 2' activity, which features the mini Spider-Man character solving people's dilemmas on Twitter in a campaign run through We Are Social.

Share
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games

Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games

Glasgow 2014 is offering a £30,000 prize to whoever in the business community comes up with the best digital idea to engage consumers during and after this summer's Commonwealth Games.

Share
Google's revenues climb 19% to $15.4bn in first quarter

Google's revenues climb 19% to $15.4bn in first quarter

Google's shares dropped 5% despite the company raking in revenues of $15.4bn for the first quarter, after analysts were disappointed by the pace of the company's transition in an industry increasingly dominated by mobile ads.

Share

Get news by email