Murdoch promises to run Sky News for 10 years for Fox takeover deal

Tycoon makes offers to allay media monopoly fears and ease through 21st Century Fox deal

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.

As the Competition & Markets Authority provisionally blocked Rupert Murdoch’s bid for full control of Sky, it launched a consultation looking at three options for the future of Sky News.

The first option is to close the loss-making business, which would eliminate the CMA’s concern that the Sky deal would give the Murdoch family too much control of UK news media. Sky has already said it will review Sky News's future if the bid is blocked.  

The second option is a spin-off or sale of Sky News. Before the Murdochs abandoned their 2011 bid for Sky – which was derailed by the phone-hacking scandal – the then culture secretary accepted a plan to publicly list Sky News. 

The third option is to keep Sky News as part of Sky but to beef up its independence. Fox has already tabled a range of measures, or “firewall” remedies, to broadcasting regulator Ofcom which the CMA is now using as the basis of further consultation. These include a commitment to maintaining investment in Sky News at current levels for a least five years, and establishing an editorial board with a majority of independent directors. 

In June, Ofcom said this plan did mitigate media plurality concerns, but the then culture secretary said she would be “reluctant” to accept them as they did not “fully remedy” the problem. 

Fox now has an opportunity to submit improved remedies. 

The CMA has until 1 May to deliver its final recommendation to the culture secretary, who then has 30 days to make his decision.

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.

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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.

Contributor

Mark Sweney

The GuardianTramp

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