The UK telecoms regulator Ofcom has launched an investigation to determine whether the proposed merger between Sky and 21st Century Fox would undermine media plurality — the public’s right to access a wide range of news sources and diverse viewpoints.
Rupert Murdoch, as chairman of 21st Century Fox and News Corp, already exerts considerable influence over global media. His companies own titles and assets such as The Times, The Sun, the Wall Street Journal, book publisher HarperCollins, and the Fox Entertainment Group, which includes the 20th Century Fox film studio and the Fox Broadcasting Company.
In the House of Commons, Karen Bradley, Secretary of State for Culture, Media and Sport, voiced concerns about the proposed deal, citing the possible expansion of Murdoch’s influence across the UK media landscape. Sky is a major telecommunications provider, supplying mobile, broadband and satellite TV packages, and it operates a prominent news organisation with Sky News available on television and online.
Following the UK Department for Culture, Media and Sport’s formal intervention, 21st Century Fox issued a statement outlining its position on the proposed transaction:
“21st Century Fox looks forward to working with UK authorities in their reviews of our proposed transaction to combine with Sky. We are confident that a thorough review of our track record over 30 years will underscore our commitment to upholding high broadcast standards, and will demonstrate that the transaction will not result in there being insufficient plurality in the UK. The media market has changed dramatically in recent years, as has our business. We believe our proposed £11.7 billion investment will benefit the UK’s creative industries. We look forward to continuing to work with all stakeholders and are confident that the transaction will be approved.”
Currently, 21st Century Fox holds a 39 percent stake in Sky. Murdoch’s previous attempt to acquire the remaining shares was abandoned in the wake of the phone-hacking scandal that led to the closure of News of the World, a former News Corporation title.
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