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| Rupert Murdoch BSkyB takeover gets government go ahead | Rupert Murdoch BSkyB takeover gets government go ahead |
| (40 minutes later) | |
| Rupert Murdoch's News Corporation has been given government approval for its controversial takeover of BSkyB. | Rupert Murdoch's News Corporation has been given government approval for its controversial takeover of BSkyB. |
| The green light follows News Corp's offer to spin-off Sky News as an independent company. | The green light follows News Corp's offer to spin-off Sky News as an independent company. |
| The decision follows concerns about the concentration of media outlets in the hands of one organisation. | The decision follows concerns about the concentration of media outlets in the hands of one organisation. |
| Rival UK media groups dismissed News Corp's offer as a "whitewash" and said they would "vigorously contest" the takeover. | Rival UK media groups dismissed News Corp's offer as a "whitewash" and said they would "vigorously contest" the takeover. |
| News Corp, which owns the Sun, the News of the World, the Times and the Sunday Times, is looking to take over the 61% of BSkyB that it does not own. | News Corp, which owns the Sun, the News of the World, the Times and the Sunday Times, is looking to take over the 61% of BSkyB that it does not own. |
| Culture Secretary Jeremy Hunt said he intended to accept News Corp's offer rather than refer the takeover to the Competition Commission. | Culture Secretary Jeremy Hunt said he intended to accept News Corp's offer rather than refer the takeover to the Competition Commission. |
| Ofcom, the UK media regulator, had said the deal should be referred to the commission. The European Commission has already ruled there is no reason to oppose the takeover on competition grounds. | Ofcom, the UK media regulator, had said the deal should be referred to the commission. The European Commission has already ruled there is no reason to oppose the takeover on competition grounds. |
| News Corp said it welcomed Mr Hunt's decision. | News Corp said it welcomed Mr Hunt's decision. |
| It said it noted Ofcom's opinion to the culture secretary that it considered that "the revised proposed undertakings would address [its] plurality concerns". | It said it noted Ofcom's opinion to the culture secretary that it considered that "the revised proposed undertakings would address [its] plurality concerns". |
| Opponents will have until 21 March to lodge any complaints. | Opponents will have until 21 March to lodge any complaints. |
| A number of media groups have opposed the takeover, including the Guardian, Associated Newspapers, Trinity Mirror and the Telegraph. | A number of media groups have opposed the takeover, including the Guardian, Associated Newspapers, Trinity Mirror and the Telegraph. |
| "We shall be vigorously contesting this whitewash of a proposal during the consultation period, as well examining all legal options," they said in a joint statement. | "We shall be vigorously contesting this whitewash of a proposal during the consultation period, as well examining all legal options," they said in a joint statement. |
| 'More independence' | 'More independence' |
| Mr Hunt, responsible for deciding whether to allow the takeover, said he believed News Corp's offer to hive off Sky News would "address concerns about media plurality". | Mr Hunt, responsible for deciding whether to allow the takeover, said he believed News Corp's offer to hive off Sky News would "address concerns about media plurality". |
| "The undertakings offered would ensure that shareholdings in Sky News would remain unchanged, and indeed offer it more independence from New Corporation than it currently has," he said. | "The undertakings offered would ensure that shareholdings in Sky News would remain unchanged, and indeed offer it more independence from New Corporation than it currently has," he said. |
| Under the terms of News Corp's proposals, the board of Sky News would have a non-executive, independent chairman and a majority of non-executive, independent directors. | Under the terms of News Corp's proposals, the board of Sky News would have a non-executive, independent chairman and a majority of non-executive, independent directors. |
| News Corp has proposed that shares in Sky News be distributed among existing shareholders, with Mr Murdoch's company maintaining its 39% holding. | News Corp has proposed that shares in Sky News be distributed among existing shareholders, with Mr Murdoch's company maintaining its 39% holding. |
| News Corp would not be allowed to increase its shareholding without the permission of the culture secretary for 10 years. | News Corp would not be allowed to increase its shareholding without the permission of the culture secretary for 10 years. |
| It has also offered to provide funding in the form of "a substantial revenue stream" to Sky News for 10 years. | It has also offered to provide funding in the form of "a substantial revenue stream" to Sky News for 10 years. |
| Media analyst Steve Hewlett told the BBC the offer "rolls forward the status quo, but with an independent chairman and board". | Media analyst Steve Hewlett told the BBC the offer "rolls forward the status quo, but with an independent chairman and board". |
| The funding commitment and continued shareholding ensures that News Corp "has a long-term interest in Sky News prospering," he added. | The funding commitment and continued shareholding ensures that News Corp "has a long-term interest in Sky News prospering," he added. |
| BBC business editor Robert Peston said Mr Hunt's decision heralded "huge changes to the landscape of the British media industry". | BBC business editor Robert Peston said Mr Hunt's decision heralded "huge changes to the landscape of the British media industry". |
| A combined News Corp and BSkyB would generate revenues that would "dwarf all rivals, even the BBC", he said. | A combined News Corp and BSkyB would generate revenues that would "dwarf all rivals, even the BBC", he said. |
| Global interests | Global interests |
| Mr Murdoch has made no secret of his desire to gain control of BSkyB. | Mr Murdoch has made no secret of his desire to gain control of BSkyB. |
| BSkyB made a pre-tax profit of £465m in the last six months of 2010, with revenues of £3.2bn. | BSkyB made a pre-tax profit of £465m in the last six months of 2010, with revenues of £3.2bn. |
| "BSkyB is doing very well, and News Corp considers Sky's pay-TV service as the best in the world," said Mr Hewlett. | "BSkyB is doing very well, and News Corp considers Sky's pay-TV service as the best in the world," said Mr Hewlett. |
| News Corp has many interests outside the UK, including the Fox broadcast and cable networks, 20th Century Fox film studios, Harper Collins book publisher, and newspapers such as the Wall Street Journal. | News Corp has many interests outside the UK, including the Fox broadcast and cable networks, 20th Century Fox film studios, Harper Collins book publisher, and newspapers such as the Wall Street Journal. |
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| Murdoch had to become American to get his way over there. No such hurdles here. Next up will be an attack on the BBC. For Murdoch and his ilk culture is a mere commodity to be bought and sold in an open competitive market. But it's more, a lot more. It's connected to who and what we are. Peoples go to war to defend their way of life. Who will defend us from the bankers and media moguls? | Murdoch had to become American to get his way over there. No such hurdles here. Next up will be an attack on the BBC. For Murdoch and his ilk culture is a mere commodity to be bought and sold in an open competitive market. But it's more, a lot more. It's connected to who and what we are. Peoples go to war to defend their way of life. Who will defend us from the bankers and media moguls? |
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| Huge turnaround in the government's attitude: from Vince 'I'm going to war on Murdoch' Cable, to Jeremy 'let's not even bother with the Competition Commission' Hunt | Huge turnaround in the government's attitude: from Vince 'I'm going to war on Murdoch' Cable, to Jeremy 'let's not even bother with the Competition Commission' Hunt |
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| This is a remarkable decision. So now Murdoch can bundle his newspapers his with TV packages, giving him a significant advantage over all the other publishers. The TV market is so much less competitive that a price hike or two by Sky won't matter in terms of harming their business - the consumer though will pay out more, unless of course, you just go with Murdoch. Very clever from him. | This is a remarkable decision. So now Murdoch can bundle his newspapers his with TV packages, giving him a significant advantage over all the other publishers. The TV market is so much less competitive that a price hike or two by Sky won't matter in terms of harming their business - the consumer though will pay out more, unless of course, you just go with Murdoch. Very clever from him. |
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| This is the worst possible outcome for the British media and Britain in general. If this leads to further erosion of BBC influence it will be to the detriment of this country. I can't express how infuriating this is. Charlie Brooker won't need to use US TV to laugh at any more, he'll have everything right in front of him | This is the worst possible outcome for the British media and Britain in general. If this leads to further erosion of BBC influence it will be to the detriment of this country. I can't express how infuriating this is. Charlie Brooker won't need to use US TV to laugh at any more, he'll have everything right in front of him |
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| Not sure what the fuss is about. Given the reach of the BBC is greater than BSky B and Murdoch press should we not be debating the break up of the BBC | Not sure what the fuss is about. Given the reach of the BBC is greater than BSky B and Murdoch press should we not be debating the break up of the BBC |
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| Comments 5 of 6 | Comments 5 of 6 |
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