The BBC reports that
Jeremy Hunt has written to Ofcom and the Office of Fair Trading about Rupert Murdoch’s proposed takeover of BskyB. Hunt asks the regulators if they now have any ‘additional concerns in
respect of plurality over and above those raised in your initial report to me on this matter received on 31 December 2010.’ Hunt concentrates on Murdoch’s provisions about maintaining
the independence of Sky News. His concern with plurality is ironic given that the British media has become much more plural following the demise of the News of the World. This favours
Murdoch’s takeover bid, on the face of it at least.
Hunt also touches on the ‘fit and proper persons tests’ with regard to the deal. Presumably, that point can only be decided when the facts of phone hacking at News International are finally established. Even then, it’s important to note that News International is not buying BSkyB, so any potential negative findings may not necessarily hamper News Corp’s bid.
Meanwhile, Murdoch’s political opponents are determined that these discussions take place now. Parliament will debate these matters this week and the coalition is likely to be split. Danny Alexander told BBC News that the Liberal Democrats will wait to see the wording of the motion before deciding how to vote, while Tim Farron told Today that he could only see his party backing the motion. Most eyes, though, will be trained on the Conservatives, and in David Cameron in particular, to see how they respond.
Uncertainty is anathema to business confidence, so it’s no surprise that BSkyB’s shares have dived this morning, crashing by 6.6 per cent on the day so far at the time of writing.
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