Rupert Murdoch has doubled the length of time he is willing to keep running Sky News to “at least” 10 years, as 21st Century Fox sweetens its offer to protect the news channel to gain clearance for the £11.7bn takeover of Sky.
The Competition and Markets Authority said last month that Murdoch’s bid raised media plurality concerns because the deal would give his family too much control over UK news media. The Murdoch family trust controls Fox and News Corp, publisher of the Sun and the Times.
Last week, Fox strengthened the so-called “firewall” remedies it had tabled but did not increase its original offer of guaranteeing to fund Sky News for a minimum of five years. Ofcom had indicated that extending the funding guarantee might help the Murdochs gain clearance. When the Murdochs tried to buy Sky in 2011 a 10-year funding guarantee was accepted by the then minister in charge, Jeremy Hunt, as part of a package of guarantees to allay media plurality issues.
On Tuesday, Fox moved to match its previous commitment promising to continue to run a “Sky-branded” news service for “at least” 10 years, and guaranteeing funding over that period.
However, the deal offered is weaker than 2011 because Fox has said that funding for Sky News will continue to be “not materially different” to current levels only for five years.
The funding level for the second five-year period is far less certain, with Fox saying it will be “determined at the time taking into account market conditions and the level of investment required to maintain a Sky-branded news service”.
The revised remedies offered by Fox also include a further toughening of the independence of Sky News from any potential meddling by the Murdochs.
The Sky News board will be required to publish a statement each year “confirming that no instances of influence or attempted influence” have been escalated to it by the head of Sky News. Fox will also file a copy of this statement in its annual report.