Broadcasters opposed to 21st Century Fox’s proposed £11.7B ($14.6B) takeover of Sky are "preparing to lodge complaints with regulators" in the U.K. and Europe after "expressing concerns that the pay-TV broadcaster will dominate bidding for top-flight sport, TV shows and movies," according to Mark Sweney of the London GUARDIAN. Rupert Murdoch’s 21st Century Fox, which owns Fox News and a Hollywood studio, "made a formal bid to take full control of Sky" on Thursday. In the past year Sky, which is 39% controlled by Fox, has "started to flex its muscle as a pan-European broadcaster." One concern among broadcasting rivals is that "Fox could enable Sky, which has found its resources stretched with the costly rollout of its advanced Sky Q box and an upcoming launch into mobile, to dominate in bidding for sports, film and drama rights." A rival broadcaster's CEO said, "When you effectively have one shareholder [Fox] you have the freedom to be more long term, more ballsy." Fox believes "there will be no competition hurdles and is buoyed by the precedent set" in '10, when the European commission -- the EU’s executive arm -- cleared a bid for Sky by Fox’s predecessor, News Corp. Rivals disagree, arguing that the Fox/Sky combination "needs to be given tough scrutiny regardless of favourable decisions in recent years." They are "expected to lodge their concerns with Brussels and the Competition and Markets Authority" in the U.K. Another exec from a major TV group said, "Compared to six years ago this is a very different environment. The 2010 bid was about [Murdoch buying Sky in the] U.K. and Ireland. This is multi-market and there are issues of [pay TV viewing] share and dominance" (GUARDIAN, 12/16).
SILENCING CRITICS: In London, Simon Duke reported the "City heavyweight" who negotiated the proposed £18.5B ($23B) takeover of Sky is to "try to neutralise his critics with a series of meetings early in the new year." Sky Deputy Chair Martin Gilbert will present the £10.75 ($13.42) per share offer to top shareholders after agreeing to a deal with 21st Century Fox last week. The acquisition "could take a year or more to complete." It will "have to be approved by competition watchdogs" (LONDON TIMES, 12/18).
CITIZEN COMPLAINTS: BLOOMBERG's Hellier & Penty reported citizens campaigning against Murdoch's plan to "gain full control of Europe's dominant pay-TV company are seeking to hamper" the deal through the U.K. Parliament. Hacked Off, a media accountability advocacy group formed during the phone-hacking scandal that "thwarted Murdoch’s first takeover attempt for Sky" in '11, is "preparing to propose changes to the Digital Economy Bill that could help impede the deal." The bill "addresses electronic-communications infrastructure and services." The group "plans to have a lord in Parliament’s second chamber present its initiative in the coming weeks." Hacked Off Exec Dir Evan Harris said that "while the details are still being worked out, amendments could focus on media plurality and corporate governance" (BLOOMBERG, 12/16).
