Culture minister Matt Hancock confirms Sky-Fox deal can proceed as long as Sky News is divested
Culture secretary Matt Hancock has confirmed that the Sky-Fox merger can go ahead, as long as Sky News is divested to Disney or another firm.
If an "acceptable form of remedy" can be found, the minister said he would wave it through. Hancock said he agreed with the Competition and Markets Authority (CMA) that there were concerns about the "potential erosion of Sky News' editorial independence, which could in turn lead to a reduction in the diversity of viewpoints available to and consumed by the public."
He also raised a flag over the "possibility of an increased influence of the Murdoch Family Trust over public opinion and the UK’s political agenda".
Hancock said: "I agree with the CMA that divesting Sky News to Disney, as proposed by Fox, or to an alternative suitable buyer, with an agreement to ensure it is funded for at least ten years, is likely to be the most proportionate and effective remedy for the public interest concerns that have been identified.
"The proposals include significant commitments from Fox. But there are some important issues on the draft undertakings which still need to be addressed."
They include Sky News' long-term financial viability, its ability to operate as a major UK-based news provider; and its ability to take editorial decisions independently, "free from any potential outside influence".
"I am optimistic that we can achieve this goal, not least given the willingness 21st Century Fox has shown in developing these credible proposals," Hancock said. "However, if we can’t agree terms at this point, then I agree with the CMA that the only effective remedy now would be to block the merger altogether. This is not my preferred approach."
Hancock also told MPs he had received no further representations on the Comcast merger, and confirmed he would not be issuing an intervention notice.
Rupert Murdoch’s 21st Century Fox launched a bid to buy the 61 percent of Sky it does not own in December 2016.
Although the European Commission waved it through, then culture secretary, Karen Bradley, referred the bid to the Competition and Markets Authority.
Back in January the CMA said the deal was not in the public interest, citing "media plurality concerns".
The competition regulator is concerned that if the deal went through, the Murdoch Family Trust (MFT)'s control across all media platforms in the UK would give it too much influence over public opinion and the political agenda.
Communications watchdog Ofcom raised similar concerns in June 2017.
This means Murdoch will go head-to-head with rival Comcast in a battle to buy Sky.
Last month Hancock said he was "not minded" to intervene in Comcast's bid, saying the proposed deal did not "raise concerns in relation to public interest considerations" that would require intervention.