Sky has warned it could close down Sky News should its presence be seen to hinder a decision by regulators on its £11.7 billion purchase by 21st Century Fox.
In documents submitted to the Competition and Markets Authority (CMA) last month, but released by the regulator on Tuesday, Sky says “the continued provision of Sky News should not be simply assumed”.
“Sky would likely be prompted to review the position in the event that the continued provision of Sky News in its current form unduly impeded merger and/or other corporate opportunities available in relation to Sky’s broader business, such as the Transaction – in particular having regard to any views expressed by shareholders regarding the denial of such opportunities.”
The CMA is currently engaged in a six-month review into issues surrounding media plurality and broadcasting standards raised by the proposed purchase.
This week Ofcom upheld two complaints against Fox News after the channel breached impartiality rules. The channel withdrew from the UK in August.
Sky had already lost 1 per cent of its value following a report that Disney was in talks with Fox with a view to a takeover that would include Sky.
Broadband TV Views: Sky News loses tens of millions of pounds every year, but right from its begining in 1989 it has helped demonstrate a commitment to broadcasting, that went far beyond US re-runs. Now the independent directors, frustrated by the pace of movement in the acquisition approval process, are confident enough to show its just a part of the business. Assuming they mean it.
