News Corp meets with EC over Sky bid
December 3, 2010
Rupert Murdoch’s media giant News Corporation has reportedly offered several concessions to the European Commission to abate growing concern over competition in the sector should the Sky deal go forward.
In response to the move, the Commission has placed a 10 day extension on the initial inquiry phase as decisions are made regarding the £12bn proposal. No other details were released.
However, analysts speculate that News Corp, which already owns 39.1 per cent in the broadcast provider, has not proposed asset sales as part of its concessions. News Corp approached BSkyB’s independent investors back in June to purchase the remaining shares in the company towards full ownership.
In Brussels, the company did not comment on its meeting with the Commission, however, a spokeswoman from News Corp did say that the media giant was hoping to work side by side with the Commission in a constructive manner.
The inquiry began after several media organisations sent a letter to Business Secretary Vince Cable detailing their concerns over the merger. Many shared with Mr Cable that the allowance of News Corp to buyout Sky could threaten UK media plurality.
Mr Cable, under pressure from British news groups, asked Ofcom to intervene in the matter. The full Ofcom report is expected to be turned in at the end of this month, at which time Mr Cable would consider handing the case over to the UK competition authorities.
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