Go Back   Eurocardsharing > General Discussions > General Satellite News > Latest Satellite News

Latest Satellite News Discussion, UK Govt in corner on News Corp at General Satellite News forum; UK Govt in corner on News Corp The attempt by News Corp to buy up the 61 per cent of ...

LinkBack Thread Tools Display Modes
UK Govt in corner on News Corp
Bacteria's Avatar
Posts: 96,016

Level: 124 [♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥]
Life: 4638 / 4638
Magic: 32005 / 90529
Experience: 68%

Thanks: 1,107
Thanked 5,577 Times in 1,419 Posts
Join Date: Oct 2006
Age: 35
Thumbs up UK Govt in corner on News Corp - 12-January-2011, 19:50

UK Govt in corner on News Corp

The attempt by News Corp to buy up the 61 per cent of BSkyB that it doesnt own looks like being a win-win for two sets of participants: the lawyers, as always, and probably News Corp itself. Our rationale for this is that the British government has backed itself into a corner that will be tough to extract itself from.
Lets review the latest position:
  • The European Commission has unconditionally approved the acquisition.
  • The UK broadcasting regulator Ofcom has made a preliminary report, seen by News Corp but not made public, which reportedly says that Culture Secretary Jeremy Hunt should refer the bid to the Competition Commission.
  • It has been widely reported that very senior News Corp execs or their lawyers are seeking meetings with the minister and his officials in order to seek flexible remedies (as they did with the EU) and thus side-step the need for a full six-month public investigation into the bid.
  • These informal undertakings could cover commitments NOT to bundle TV subscriptions with newspaper subscriptions, or ring-fencing Sky News with a wholly independent board, or even disposing of Sky News altogether.
The problems would then come from just about every other newspaper or media group operating in the UK, all of whom seem to object to the deal, and most have engaged lawyers to nit-pick every stage of the process. They see any such ministerial meetings as giving News Corp an unfair advantage.
Assorted lawyers are also cautioning Mr Hunt from having any dialogue with News Corp, suggesting that any such talks would be seen as inappropriate. Their consensus suggests that Hunts role is simply to decide whether or not to refer it to the commission, and not to have cosy chats with News Corp under any circumstances.
If Hunt decides NOT to refer the bid, and thus permit the deal to proceed on normal commercial terms then he will be upsetting these rival media groups.
However, if Hunt kicks the News Corp bid into the long grass of a Competition Commission review, on the grounds of media domination or plurality, then News Corp will undoubtedly fight back with any amount of data and proof that its influence is much less than feared.
News Corp will also drag Business Secretary of State Mr Vince Cables unfortunate comments that he was out to declare war on Rupert Murdoch into their defence, arguing perhaps that the government had already and unfairly made its mind up!
In other words this bid could run and run. The best sentiment is expressed via the London stock market, where BSkyBs share price is well off its 7.46p high point at 7.37p Wednesday evening, and having fallen steadily these past few days as enthusiasm for the deal waned.

Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Forum Jump

ECS on RSS ECS on Twitter ECS on Facebook ECS on Youtube
Follow us on:

Powered by vBulletin
Copyright 2002 - 2010, Jelsoft Enterprises Ltd.
SEO by vBSEO ©2011, Crawlability, Inc.