Murdoch BSkyB Takeover Given Green Light By UK Government

LONDON — The British government has given qualified approval to Rupert Murdoch's News Corp. to take full control of satellite broadcaster British Sky Broadcasting, but set further conditions on Thursday.

To allay concerns about media dominance, News Corp. had offered to spin off Sky News as a separate company. News Corp. already owns The Sun, Britain's largest-circulation newspaper, The Times, The Sunday Times and the Sunday tabloid News of the World.

Culture Secretary Jeremy Hunt accepted that plan. However, Hunt said Thursday that he also wants Sky News to have a senior journalist on its board, a monitoring trustee to ensure that News Corp. complies with conditions, and a requirement that Sky continue to promote Sky News on its satellite channels.

The announcement provoked sharp exchanges in the House of Commons.

"This seedy deal would shame a banana republic," Tom Watson of the opposition Labour Party told Hunt.

"You have chosen to accept the assurances of News Corp. when they have breached previous assurances made when The Times, the Sunday Times, the Sun, and the News of the World were taken over," Watson said.

Hunt said he was conscious that politicians' motives would be questioned in this case, and that was why he had taken advice from regulators at every stage.

Watson and others contended that the continuing criminal investigation of phone hacking at the News of the World raised questions about News Corp.

"How on Earth did we become so spineless as to allow a company whose directors not only failed in their duties to prevent criminality at the News of the World, but actually participated in the cover-up of that criminality, to hold dominion over such vast swaths of the media in this country?" said Labour's Chris Bryant.

The phone hacking was "incredibly serious," Hunt said, but it was not an issue in deciding whether to approve the buyout.

News Corp. and BSkyB, in separate brief statements, noted Hunt had published proposals but did not immediately respond to them.

BSkyB shares down 1 pence at 847 pence on the London Stock Exchange following Hunt's announcement.

News Corp. made an initial indicative offer of 700 pence per share to buy the 61 percent of the shares it doesn't already hold, valuing BSkyB at 12.3 billion pounds ($19.8 billion).

Analysts believe News Corp. may have to go as high as 900 pence per share to persuade shareholders to sell out.

Hunt has been negotiating with News Corp. on terms for the proposed buyout rather than referring the issue to the Competition Commission for a lengthy inquiry.

Comments

[Gavin Saunders]

11:56 AM on 07/05/2011

The guy by rights should be in jail, but instead he is rewarded like this??

We are living in a sick, sick world, much of it due to Murdoch himself.

[Michael II]

06:55 AM on 07/05/2011

For those that might have missed it: Murdoch's News of the World hacked the voicemail of a teenager that had been murdered: http://t.co/X1JYuGY

If you'd like to see what the British people (as opposed to the establishment) think of this, use the #NOTW hashtag on Twitter.

[Macready]

07:51 AM on 07/05/2011

take action Michael II

http://www.avaaz.org/en/murdoch_messages_2/97.php?cl_tta_sign=f26df73d610547d30410421d8b555cc5

[Monk2001]

02:32 AM on 07/05/2011

Britain is ground zero for aristocracy. This decision doesn't surprise me at all. Old money bowing to other old money.

[Macready]

06:23 AM on 07/05/2011

it has more to do with the tories . . . . they know murdoch publications will give them a good press . . .it stinks big time . . .

this is what murdoch is all about . . . http://www.channel4.com/news/catch-up/display/playlistref/040711/clipid/040711_MILLY1_04

he belongs behind bars

[7dr361]

06:55 PM on 07/04/2011

The British should ask Americans what they thought of Rupert Murdock Faux Noise......before they allow him on their airways

[Macready]

06:31 AM on 07/05/2011

the Brits don't want more murdoch . . the government does . . . they know murdoch will sing the praises of the tories . . . that is what it is all about . . . contemptible . . . and disgusting . . .

[puffinair]

06:19 PM on 07/04/2011

money makes the world go around!

[Clipboard]

05:13 PM on 07/04/2011

Wonder how much $'s that plastic surgery frown was to install on his face?

[chance1946]

04:15 PM on 07/04/2011

Got a kick out of this.

CHRIS MATTHEWS: "You go to a meeting with him I'm told, businessmen are invited to meet him at the White House, he hauls out the damn teleprompter, and he reads it to them."

[roudy]

02:18 PM on 07/04/2011

Actually Murdoch's latest media "deal" was the sale of Myspace, which he lost over half a billion dollars on.

[breeze5208]

02:14 PM on 07/04/2011

Is the real war Murdoch v. Soras?

[Genders]

03:30 PM on 07/04/2011

not even close to equivalent. The real war is by the rich against the citizens.

"When economic power became concentrated in a few hands, then political power flowed to those possessors and away from the citizens, ultimately resulting in an oligarchy or tyranny." John Adams

"As riches increase and accumulate in few hands . . . the tendency of things will be to depart from the republican standard." Alexander Hamilton

[MDCA]

11:53 AM on 07/04/2011

The bigger he gets the more chances that he will collapse sooner.

[handsomeinnc]

09:08 AM on 07/04/2011

My serious question to my fellow liberals: How do we stop this? What can we do to stop this madness? How can we save the world from these people who are kin to re-write the history books and lie, mislead all of us?
Again, this is a very serious question. Please serious answers only.

[fisher65]

11:51 AM on 07/04/2011

the truth is out there

[luckyone77]

08:02 PM on 07/04/2011

Truth is neither a conservative or progressive issue. First, figure out a way to get people willing entertain serious questions. Such as, how can a 1000 foot skyscraper collapse at free fall speed into its own footprint without all of its interior supports simultaneously being removed?

[YOKEL13]

02:18 AM on 07/04/2011

Murdoch reminds me of someone, but I can't figure out who.

[skyleg]

09:27 PM on 07/03/2011

Murdock and the Devil were sequestered in an underground cave trying to determine the fate of the USA. Suddenly a mini-drone found the tiny entrance into the cave, guarded by the Koch Brothers, but was able to buzz by them as they swatted at what they thought were flies. The ensuing explosion not only fried the Koch Bros, but immolated Murdock, Beck, Limbaugh, Bachmann, Palin and numerous other cave dwellers. The USA was saved from a fate worse than debt!!!

[skyleg]

09:42 PM on 07/03/2011

Oh, and the Devil melted into puddle of tainted oil!

[chance1946]

10:34 PM on 07/03/2011

Why do you guys worry so much about Fox and Murdock. You have George Soras and Obama has been on 36 fund raises this year. he will have more than enough money. What’s the problem? Could it be the ratings like Fox has the top 12 cable shows?

Or could it be that you know that Obama will loose in 2012? Since has been a big disappointment
.

[skyleg]

12:21 AM on 07/04/2011

Loose? Lose is the word bro. Please learn how to spell before posting. Otherwise you just sound and write like a home schooled evangelical.

[Dawn Castle]

09:10 AM on 07/04/2011

Because George Soros isn't as rich and powerful as Murdock and he doesn't own the world's communications companies. One man with so much power over what we see and hear as news. Scary considering his political power.

[ZoeMB]

06:51 PM on 07/03/2011

This guy is trying to corner the English-speaking market!

[chance1946]

10:35 PM on 07/03/2011

To late he has it. Fox is watched all over the world. O'Riely is # 1.

[roudy]

02:21 PM on 07/04/2011

You poor bugger. You can't even spell your hero's name correctly. But that's certainly no surprise.

[DevonTexas]

01:10 PM on 07/03/2011

""This seedy deal would shame a banana republic," Tom Watson of the opposition Labour Party told Hunt."

Well said.