Company - - Mar 17,2017
Culture Secretary Karen Bradley has requested media regulators to review the purchase bid for Sky by Rupert Murdoch's 21st Century Fox.
Karen Bradley informed MPs regarding the investigation of the purchase bid which would be probably conducted by media regulators Ofcom and the CMA (Competition and Markets Authority).
She said, it is wholly correct to “seek comprehensive advice from Ofcom” in regard to the public interest considerations along with the “C.M.A. on jurisdiction issues”.
Both the regulators hold a time period until mid-May to report back to the Culture Secretary.
The British government has asked the regulators for this investigation since the $14.3 billion deal by 21st Century Fox would offer media mogul Rupert Murdoch full governance over the nation’s media landscape.
In response, the company said it was "confident" regarding the takeover to be approved.
The buyout of the 61 percent of Sky by 21st Century Fox was settled in December. Since 2011, this is the second effort by the firm to merge the two companies.
This fresh attempt has swiftly developed a storm of criticism in Britain since Mr. Murdoch already possesses several media interests.
Apart from the investigation in Britain, the deal might also face a review by antitrust regulators from the European Union.
Presently, Sky provides television, broadband as well as telephone services to a customer strength of nearly 22 million based in Austria, Germany, Britain, Ireland and Italy. Moreover, it also operates Sky News, the solo commercial 24-hour news channel centered in Britain.
According to 21st Century Fox, the media market has transformed intensely in recent years, as so has the firm’s business. The media giant said it believes the proposed £11.7bn investment will work to “benefit the UK's creative industries”.