Fox continues to try to reassure the public that a takeover of Sky would not concentrate media power or undermine Sky News’s editorial independence.
Last month the Competition and Markets Authority (CMA) indicated that 21st Century Fox’s proposed acquisition of Sky would not be in the public interest, despite a series of concessions the company offered to satisfy regulators.
The CMA suggested several measures Fox could adopt to ease concerns. One key proposal that 21st Century Fox has now agreed to is the creation of a fully independent editorial board for Sky News.
The proposed board would include two of Sky’s current independent directors. A third director, with journalistic experience, would be nominated by Sky’s independent directors.
To limit any potential influence from Fox News executives or directors, the independent board would be required to report annually to Ofcom on any attempts by people outside Sky News’s editorial function to influence the Head of Sky News.
Similar assurances were given decades ago when Rupert Murdoch acquired The Times and The Sunday Times in 1981. After that deal, changes to the editorial team raised questions about the newspapers’ independence and integrity.
The CMA notes that most third parties who responded to its consultation agreed with the regulator’s provisional findings. Many told the CMA that blocking the takeover would be the “best and most effective solution.”
“Third parties submitted that it would be unlikely that behavioural remedies would be upheld, with reference made to editorial independence of [Murdoch] owned companies such as the Wall Street Journal and The Times as questionable,” the CMA said.
Tom Watson MP, Labour’s Shadow Secretary of State for Digital, Culture, Media and Sport, commented:
“The Murdochs have made numerous guarantees of editorial and operational independence in previous media acquisitions and they have always proved meaningless and unenforceable. These new promises will be no different.
The uncertainty caused by the potential Fox–Disney sale should be a serious concern for the CMA. The ‘sunset clause’ in Fox’s proposal means all these so‑called ‘firewall remedies’ could be nullified if the Disney deal goes through. At the very least, these undertakings should include a commitment from Disney to fund Sky News for the next decade and beyond.
The only way to guarantee media plurality—which the CMA is tasked with defending—is to block this deal.”
Murdoch’s bid for Sky, valued at £11.7 billion ($14.6 billion), was launched in December 2016. Although the takeover was authorised by Ofcom and the European Commission, former Culture Secretary Karen Bradley referred the deal to the CMA in September for a detailed investigation.
The CMA has until May 1, 2018 to complete its report. Its findings will be passed to Matt Hancock, the Secretary of State for Digital, Culture, Media and Sport, who will make the final decision on the takeover.
(Image Credit: “Rupert Murdoch 2011 Shankbone” by David Shankbone, used under CC)
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