NEWS Corporation, Rupert Murdoch’s empire faces legal challenges from several companies, after getting permission to fully takeover BSkyB. BT, Trinity Mirror and the Telegraph Media Group are considering taking matters further in a deal which would see Sky News become an independent news channel.
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Culture secretary Jeremy Hunt has given the go-ahead for News Corporation to go ahead with its ambitious plans. Under the proposal, Sky News would become an independent public limited company, which would give Murdoch his complete power to fully takeover BSkyB. Sky News would have an independent board, but News Corp would still retain nearly 40% of its shares in the news provider; the heartbeat of 24-hour news worldwide. The remaining 60% stake would be owned by BSkyB shareholders. Hunt has defended the move saying; “I believe that these proposed undertakings by News Corp will address concerns about media plurality. The undertakings given offer Sky News more independence from News Corporation than it currently has.”
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Sky News has been part of the BSkyB family since it launched on February 5 1989. Had Murdoch not decided to relinquish Sky News, it would have left him with 100% complete control of BSkyB, alongside The Sun, The Times, The News of the World and 20th Century Fox underneath his News International banner. By allowing this change, it will give Murdoch the prize he wants more than anything. Under the new plans, Sky News would have to restructure its news channel, alongside appointing a board of directors and an independent chairman. News Corp would also guarantee funding for Sky News for the next decade.
However, the opposition against this takeover are furious. They feel the new deal is a complete whitewash. The coalition government have come under fire from these opponents for their relatively friendly relationship with the Murdoch family, especially as The Sun, the UK’s No.1 selling newspaper is politically supporting the Conservatives. Ex-BBC board governor Sir Christopher Bland is convinced that the deal would be very bad for the UK media industry. “The point is that the proposal does not address the fundamental issue, which isn’t about Sky News, which is an excellent service. The issue, which should be outlined by the competition, is the power News International has over television and newspapers in the UK.”
Clearance has yet to be fully given though, as these opponents to the takeover have until March 21 to try and changed the mind of Culture Secretary Hunt. If that process ends up not working out, this could end in a messy little wrangle involving the courts; a process that is bound to drag on and on. It is safe to say that we haven’t heard the last of this protracted takeover.
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