Rupert Murdoch's 21st Century Fox is "expected to formally notify the European competition regulator" of its £11.7B ($14.4B) takeover offer for Sky later this week, after which U.K. Culture Secretary Karen Bradley "will have to decide whether to launch an investigation into the extent of Murdoch's control" of U.K. media, according to Sweney & Martinson of the London GUARDIAN. Once the European Commission makes Fox's bid notification public, Bradley "will have 10 working days to decide whether to issue a public interest intervention notice." Fox's deal to "snap up" the 61% of Sky it does not already own will give Murdoch control of Sky News and pay-TV operations in the U.K., Germany, Austria and Italy. Given the "level of opposition to Murdoch’s first bid for Sky" in '11, which was "eventually abandoned because of the fallout from the phone-hacking scandal that was engulfing" his U.K. newspapers, Bradley is expected to refer the deal to media regulator Ofcom. If Ofcom "raises concerns," she must decide "whether to accept an undertaking from Fox to address them" (GUARDIAN, 3/1). In London, Toplensky & Bond reported Europe Competition Commissioner Margrethe Vestager "will have almost a month to make a preliminary decision on the deal." Her investigation will "only consider if the deal will impede competition in the European market." The companies would have the opportunity to "propose selling parts of the businesses or make promises to mitigate any Brussels concerns." Sky Chair & Fox CEO James Murdoch told investors in December that he expected the deal to "clear regulatory hurdles by the end of the year 'with no meaningful concessions'" (FINANCIAL TIMES, 3/1). REUTERS' Kate Holton reported analysts and lawyers "expect the bid to be referred to Ofcom." Some politicians have called for the deal to be blocked, although analysts and lawyers believe it will be "approved eventually" (REUTERS, 3/1).
JUST SAY NO: In London, Jane Martinson also reported Murdoch's bid "should be rejected on competition grounds alone," according to research published on Wednesday. In a submission to Bradley, campaigners at the Media Reform Coalition and online activist network Avaaz argued that the "overall market shares" of both Murdoch-owned newspapers, the Sun and the London Times, as well as Sky remain "materially unchanged" since '11, when media regulator Ofcom "raised concerns about a similar takeover." Supporters of the bid by Fox, which is 39% owned by the Murdochs, have argued that "an increasingly competitive media landscape with digital rivals such as Google and Facebook has diminished the influence of the family's media empire" in the U.K. Fox execs have argued that "there is no need even for a referral given the increased competition" (GUARDIAN, 3/1).
