Gov’t says NewsCorp/BSkyB decision could be delayed after NOTW closure

The government says culture secretary Jeremy Hunt’s decision on whether NewsCorp can go ahead to take full control of BSkyB “will take some time”, following the News of the World’s closure.

The consultation on NewsCorp’s proposed undertakings to address competition concerns should it take over the 61% of BSkyB it does not own ends at 12pm today.

The undertakings include the hiving off of Sky News into a new publicly listed company that will be independently funded for 10 years and the requirement for Sky to cross-promote Sky News on its channels.

A statement from the Department for Culture, Media and Sport, says: “The secretary of state has always been clear that he will take as long as is needed to reach a decision.

“The secretary of state will consider carefully all the responses submitted and take advice from Ofcom and the Office of Fair Trading before reaching his decision. Given the volume of responses, we anticipate that this will take some time.

“He will consider all relevant factors including whether the announcement regarding the News of the World’s closure has any impact on the question of media plurality.”

NewsCorp says it notes today’s comments and its priority is to continue to cooperate with the secretary of state for culture, Olympics, media and sport and the existing regulatory process.

The News of the World closed yesterday after 168 years, following fresh allegations of phone hacking at the newspaper, fuelling speculation that a new Sunday red top is to be launched by News International.

NewsCorp’s shares dropped only slightly by 0.25% to $17.43 when they closed on the New York Stock Exchange last night, following the decision to close the Sunday tabloid.

Shares in BSkyB fell 4% to 779p this morning, devaluing the company by more than £700m.

Recommended

/v/s/b/SkyNewsLogo.jpg

News Corp withdraws Sky News spin off offer

Lara O'Reilly

News Corp has withdrawn its offer to spin off Sky News as part of its BSkyB takeover bid, made to avoid a referral to the Compettion Commission, a move that came as the government confirmed it would pass the deal to the competition regulator for further investigation.

/d/p/i/NewsoftheWorldWebsite.jpg

News of the World website dismantles paywall

Gina Lovett

News of the World has taken down its paywall and opened up its website, following News International’s announcement that the last edition of the paper will be printed this Sunday (10 July), following the latest hacking allegations levelled at the tabloid.

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now