DEBATE: With Comcast and Fox bidding over Sky, does it matter that it will be owned by a US company?
With Comcast and Fox bidding over Sky, does it matter that it will be owned by a US company?
Alastair Benn, editor of Reaction Weekend, says YES.
Pre-Murdoch, the British media was a pretty conservative, comfortable place. There was a recognisable journalistic culture derived from the close proximity of newsroom, editor’s office, and printing press – all the national papers were based around Fleet Street.
Murdoch brought in new money, new energy, and new talent. He made papers more profitable, and broke the stranglehold of print unions. Back then, there were immediate and significant benefits to foreign ownership.
But in the longer term, Murdoch has had a corrosive effect on the quality of public discourse and public trust in the Fourth Estate, ushering in an aggressive “hack” mentality.
His pitch to gain full control of Sky via Fox needs to be read within that context. But challenger Comcast is hardly a white knight – as recently as 2014, it pipped Monsanto to the post in Consumerist’s “Worst Company in America” awards.
The success of either bid would take us at least one step along the one-way path away from a truly plural press.
Read more: Money or power? Fox has a decision to make in its Sky pursuit
Laith Khalaf, a senior analyst at Hargreaves Lansdown, says NO.
There is a tendency to view takeovers of UK-listed companies as an affront to Britain, but normally it’s nothing of the sort. The battle between US firms 21st Century Fox and Comcast for Sky exemplifies this.
While Sky may fall to a US company, its ownership is pretty international already. Fox, which already owns 39 per cent of Sky, is part of the Australian mogul Rupert Murdoch’s media empire.
Other shareholders include Swiss bank UBS, and French firm Societe Generale.
Sky’s attraction is its strategic position in Europe, which mean that its products aren’t suddenly going to change. Basketball isn’t going to replace Premier League football. Some jobs may be centralised, but both suitors have committed to maintaining the status quo in terms of UK operations.
For shareholders, each deal must be assessed on its own merits, and the current offer looks pretty sweet.
Indeed, with Fox yet to respond to the latest Comcast offer, Sky investors might believe they can get even better.
Read more: Sky pulls support for Murdoch deal after Comcast firms up £22bn approach