Sky News held hostage in Sky takeover row

Sky has repeated its threat to close Sky News if the government refuses to let News Corp’s takeover go ahead. News Corp wants to take 100 per cent control of Sky, adding it to its stable of newspapers and publishing. And it’s warned that it might not want to keep Sky News going if it can’t complete the buyout.

Culture secretary Jeremy Hunt today said he is considering referring the merger to the Competition Commission on the advice of media regulator Ofcom.
Ofcom’s report said the merger ‘may be expected to operate against the public interest’, and recommended a full investigation.
But Sky described Ofcom’s report as ‘distorted’ and ‘idiosyncratic’, and warned that preventing the merger could ‘undermine the incentives which have resulted in the provision of Sky News to date’.
However, Hunt said an investigation could be avoided if Sky can offer concessions which might protect the public’s choice of news providers.
These could involve separating Sky News from News Corp – although the loss-making channel might struggle to survive on its own.
Less radical concessions could involve installing an independent editorial board to protect Sky News from interference by News Corp.
Any concessions will be published for a 15-day consultation, while they are examined by Ofcom and the Office of Fair Trading.