Advertisement

Murdochs’ bid for Sky could undergo further regulatory scrutiny in Britain

Sky headquarters in London on March 17, 2017.
Sky headquarters in London on March 17, 2017.
(Daniel Leal-Olivas / AFP/Getty Images)
Share

British regulators have completed a comprehensive review of 21st Century Fox’s proposed takeover of the European pay-TV giant Sky, but the nearly $15-billion deal might undergo further regulatory scrutiny.

Britain’s secretary of state for culture, Karen Bradley, said Tuesday that she would decide by June 29 whether Fox’s proposed takeover of Sky would be referred to the Competition and Markets Authority for further review.

Bradley on Tuesday received a report from Britain’s media watchdog, the Office of Communications, or Ofcom, which analyzed whether the deal would give Rupert Murdoch and his family too much control over media in Britain.

Advertisement

Ofcom’s findings were not made public.

New York-based 21st Century Fox, which is controlled by the Murdoch family, already owns 39% of Sky, the pay-TV service that boasts 22 million customers in Britain, Ireland, Germany, Austria and Italy.

In December, Fox offered nearly $15 billion to buy the 61% of Sky that it does not already own. Consolidating Sky would be a coup for the Murdoch family, which has long wanted to fully control the pay-TV company that Rupert Murdoch launched 28 years ago to compete with the venerable British Broadcasting Corp.

But the Sky deal requires the consent of British regulators. The completion of Ofcom’s report marked the end of the first phase of the review.

If Bradley refers the matter to the Competition and Markets Authority, that would start a second phase of inquiry.

“My priority remains — as it has throughout this proposed merger — to make my decision independently, following a process that is scrupulously fair and impartial, and as quickly as possible,” Bradley said in a statement.

Ofcom also completed its assessment of whether Fox executives pass the “fit and proper” test, a moral standard for British broadcasters. Those findings should be released in the coming days, British analysts have said.

Advertisement

Analysts believe the Sky deal will pass regulatory muster because of the diversity of media outlets in Britain. The deal has already been approved by the European Union.

Fox declined to comment.

meg.james@latimes.com

@MegJamesLAT

Advertisement