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Sky is a fit and proper broadcaster, rules Ofcom Sky is a fit and proper broadcaster, rules Ofcom
(about 3 hours later)
The media regulator Ofcom has found that BSkyB remains a "fit and proper" owner of a broadcast licence despite the phone-hacking affair which embroiled its parent company and during which, it said, James Murdoch's conduct repeatedly fell short of the standard to be expected.The media regulator Ofcom has found that BSkyB remains a "fit and proper" owner of a broadcast licence despite the phone-hacking affair which embroiled its parent company and during which, it said, James Murdoch's conduct repeatedly fell short of the standard to be expected.
The review, carried out in the wake of the scandal and News International's closure of the News of the World, was aimed at establishing whether the satellite television group – whose largest shareholder is News Corporation – remained eligible to broadcast in the UK.The review, carried out in the wake of the scandal and News International's closure of the News of the World, was aimed at establishing whether the satellite television group – whose largest shareholder is News Corporation – remained eligible to broadcast in the UK.
If it had decided that either Murdoch – the younger son of Rupert Murdoch who stood down as chairman of News International in March and as chairman of BSkyB in April, but remains on the board as a non-executive director – or the company itself were not fit and proper owners, the regulator could have revoked BSkyB's licence.If it had decided that either Murdoch – the younger son of Rupert Murdoch who stood down as chairman of News International in March and as chairman of BSkyB in April, but remains on the board as a non-executive director – or the company itself were not fit and proper owners, the regulator could have revoked BSkyB's licence.
But despite finding fault with James Murdoch's response to the phone-hacking allegations, Ofcom concluded BSkyB could keep its licence.But despite finding fault with James Murdoch's response to the phone-hacking allegations, Ofcom concluded BSkyB could keep its licence.
The ruling found: "There is no evidence that Sky was directly or indirectly involved in any of the wrongdoing either admitted or alleged to have taken place at [NoW] or the Sun.The ruling found: "There is no evidence that Sky was directly or indirectly involved in any of the wrongdoing either admitted or alleged to have taken place at [NoW] or the Sun.
"In the circumstances, and notwithstanding our views in relation to James Murdoch's conduct, we do not consider, having taken into account all the relevant factors, that on the evidence available to date Sky is no longer fit and proper to hold broadcast licences."In the circumstances, and notwithstanding our views in relation to James Murdoch's conduct, we do not consider, having taken into account all the relevant factors, that on the evidence available to date Sky is no longer fit and proper to hold broadcast licences.
"Whilst we consider that James Murdoch's conduct in various instances fell short of the standard to be expected of the chief executive officer and chairman, we do not find that James Murdoch's retention as a non-executive director of Sky means that Sky is not fit and proper to hold broadcast licences."Whilst we consider that James Murdoch's conduct in various instances fell short of the standard to be expected of the chief executive officer and chairman, we do not find that James Murdoch's retention as a non-executive director of Sky means that Sky is not fit and proper to hold broadcast licences.
"We recognise that whether it is appropriate for James Murdoch to be a director in light of the events is a matter for the board and shareholders of Sky.""We recognise that whether it is appropriate for James Murdoch to be a director in light of the events is a matter for the board and shareholders of Sky."
More details soon... Sky welcomed the long awaited ruling, as its share price rose slightly in early trading on Thursday, up 5p – nearly 1% – to 733p at 9am.
"Ofcom is right to conclude that Sky is a fit and proper broadcaster. As a company, we are committed to high standards of governance and we take our regulatory obligations extremely seriously. As Ofcom acknowledges, our track record of compliance in broadcasting is good," the company said in a statement.
"We are proud of our contribution as a broadcaster, the investments we make to increase choice for UK audiences and the wider benefits we create for the economy."
The Ofcom review, was aimed at establishing whether the pay-TV broadcaster remained eligible to broadcast in the UK, given that News International owner News Corp is its largest shareholder, with a 39.1% stake.
At the point Ofcom launched its review, 6 July 2011, News Corp was still bidding to take full control of Sky. It abandoned the bid the following week in the face of mounting public and political outrage over News of the World phone-hacking.
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