Labour’s deputy leader has called on Karen Bradley, the Secretary of State for Culture, Media and Sport, to make the findings of the investigation into Fox’s (NASDAQ:FOX) takeover of Sky (LON:SKY) public, whilst also referring the deal to competition authorities.
“The proposed takeover of Sky by Fox is a hugely significant deal with the potential to transform the UK’s media market,” said Tom Watson.
“It is therefore vital that Ofcom’s recommendations to the government are published in full at the earliest available opportunity.”
Ofcom is currently investigating whether Murdoch’s takeover of Sky will give him too much media control and trust him to adhere to impartiality.
Wilton Fry, an analyst at RBC Capital Markets said in a note: “In our view the risk is that the DCMS [Department for Culture, Media and Sport] refers the deal to the CMA as it could be politically expedient to do so,”
Those behind the deal have said it would not lead to too much concentration in the media due to recent the changes in media. Today with the internet, there is more choice and diversity in the news market than before.
“I will aim to give my initial ‘minded to’ decision, publish the CMA and Ofcom public interest reports – in line with the Enterprise Act 2002 – and return to Parliament to make an oral statement by Thursday 29 June,” said Bradley.
“There will then be an opportunity for representations to be made before I make a final decision.”
“In the meantime, given the quasi-judicial nature of the process, I am unable to comment substantively on the matter of the case.”
“My priority remains – as it has throughout this proposed merger – to make my decision independently, following a process that is scrupulously fair and impartial, and as quickly as possible.”
Bradley will give her verdict on the takeover by Thursday next week.