Murdoch faces new obstacle to Sky takeover
Jeremy Hunt's reasons for asking for new advice from the media regulator, Ofcom, and from the competition watchdog, the Office of Fair Trading - in letters he plans to send them later today - are pretty embarrassing for Rupert Murdoch, chairman of News Corporation.
The culture secretary wants to know whether the disclosure that News Corp's News of the World business was out of control for many years is reason to doubt that undertakings given by News Corp to protect the independence and financial strength of Sky News are as credible and sustainable as he would like.
And Mr Hunt wants guidance on the implications for plurality or choice in the media industry of the possibility that News Corp might eventually be deemed by Ofcom as not fit and proper to own all of BSkyB.
For Mr Hunt to suggest that News Corp might not be a fit-and-proper owner of anything is a pretty big shift from the prevailing - and some would say fawning - attitudes towards Mr Murdoch we've witnessed from British governments in recent years.
Finally, Mr Hunt makes the less contentious point that the closure of the News of the World changes plurality in the media universe: that's a definitional point, in that there is, as of today, one less news voice.
However it is unclear whether the closure of the News of the World represents a reduction in News Corp's market share, and therefore an enhancement of its claim that plurality isn't damaged by its plan to own all of BSkyB - or whether the demise of the News of the World suggests that important media voices are not safe under News Corp's stewardship.
Either way, the importance of Mr Hunt's letter is in the generality: it is all a pretty clear hint that Mr Hunt might after all decide to refer the takeover to the Competition Commission for lengthy examination.
As the latest of a whole series of roadblocks recently erected in the way of that takeover -it is highly likely that BSkyB's shares will fall again this morning.
~RS~q~RS~~RS~z~RS~41~RS~)



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Comment number 112.
Northumbrian11th July 2011 - 17:37
Every time we buy a News International product we are subsidising the power of Rupert Murdoch and implicitly endorsing his tactics. We, the British public, decided that NotW had to be boycotted. We know we have power.
But Sky is where the future lies - are we prepared to boycott Sky Sports? I'm not a sports fan, but I'd guess that most people, and clubs, want their footie at any moral cost.
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Comment number 111.
Fiona MacHinery11th July 2011 - 17:24
This 2006 report was ignored - http://www.ico.gov.uk/upload/documents/library/corporate/research_and_reports/ico-wppnow-0602.pdf ?
It was a Labour government at the time, but the collective lack of response shows how much in thrall they all were to the newspaper barons. This was/is wrong - and I especially object to having a foreigner having any influence in which party runs the UK government.
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Comment number 110.
Fiona MacHinery11th July 2011 - 17:09
So now evidence is emerging that the Times was at it too, in the form of blagging information, also illegal. I wonder how long it will take advertisers to follow Renault's lead and pull their adverting from all of NI's publications.
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Comment number 109.
Kit Green11th July 2011 - 16:31
108. tony_was_here
Does anybody believe that only the NOW alone from the NI stable was using unethical means?
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Try this:
http://www.bbc.co.uk/news/uk-14112097
Link to this (Comment number 109)
Comment number 108.
tony_was_here11th July 2011 - 16:15
Does anybody believe that only the NOW alone from the NI stable was using unethical means? It would be interesting to look at all the titles worldwide and see where they stand.
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Comments 5 of 112