News Corp Moves Closer To BSkyB Takeover

The Government has provisionally agreed to accept News Corp's proposed takeover of BSkyB, but will consult on further conditions.

Earlier this year, News Corp had put forward the idea of spinning of Sky News as a separate company, in order to address concerns over its impartiality.

A consultation was launched by Culture Secretary Jeremy Hunt in March, but he has now added four extra conditions to the deal. These include having an independent editorial director at Sky News board meetings and the continued promotion of Sky News on other Sky channels.

The Culture Secretary said: "I am aware of the huge interest in the proposed merger and am grateful to those who responded to the consultation. I have considered carefully the points raised and, as at all steps in this process, taken advice from the independent regulators.

"The regulators have confirmed that the proposed undertakings are still sufficient to ensure media plurality. I could have decided to accept the original undertakings but a number of suggestions were made in response to the consultation which could further strengthen the undertakings, particularly around editorial independence, business viability and the articles of association. I am therefore proposing some changes to the undertakings and I will not hold a further public consultation."

More than 40,000 people had submitted their views on the takeover to the consultation so far and Mr Hunt me with representatives from a number of organisations, including Trinity Mirror, the Guardian Media Group and the Telegraph Media Group, but the Government said that no evidence has been submitted that was strong enough to prevent the takeover going ahead.

The consultation will run until July 8, after which time Mr Hunt will either decide to allow the takeover or refer it to the Competition Commission.

News Corps, which owns The Sun and The Times newspapers, already owns 39% of BSkyB. It offered 700 pence a share last June, but the Board said to come back with a higher offer.

The takeover has been opposed by an alliance of other newspapers, including publishers of The Guardian, the Daily Mail and the Daily Telegraph.

(KMcA/GK)