Culture Secretary ‘minded’ to order Ofcom probe into Sky takeover

Culture Secretary Karen Bradley has said she is “minded” to order an Ofcom investigation into the planned £11.7 billion takeover of broadcaster Sky by Rupert Murdoch’s 21st Century Fox, over concerns about media plurality and broadcasting standards.

In a statement issued as the broadcasters formally notified the European Commission of the planned merger, Ms Bradley stressed that she has not yet taken a final decision on whether to intervene.

She has written to both companies asking for them to make written representations by March 8, with the aim of announcing a final decision on intervention in the week commencing March 13.

“I have today written to the parties to inform them that I am ‘minded to’ issue a European Intervention Notice on the basis that I have concerns that there may be public interest considerations – as set out in the Enterprise Act 2002 – that are relevant to this proposed merger that warrant further investigation,” said Ms Bradley.

“To be clear – I have not taken a final decision on intervention at this stage. In line with the guidance that applies to my quasi-judicial role I am inviting written representations from the parties and will aim to come to a final decision on whether to intervene in the merger within 10 working days of today’s notification.

“In January I made clear that I would make this quasi-judicial decision independently, following a process that is scrupulously fair and impartial and as quickly as possible with all relevant information in front of me.”

A decision to intervene would not block the deal, which envisages Fox paying £10.75 per share for the 61% of Sky it does not already own – valuing the Game Of Thrones broadcaster at £18.5 billion.

Instead, it would trigger an Ofcom assessment of public interest considerations as well as a Competition and Markets Authority report on jurisdiction, to be considered by Ms Bradley acting in her quasi-judicial role.

The deal, which shareholders will still have to vote on, comes five years after the media tycoon’s last tilt at taking full control of the business through News Corporation.

Ms Bradley promised to update MPs on her actions in a statement to the House of Commons on March 6.