British govt refers Sky-Fox takeover to formal probe

The British government yesterday said it wants a takeover of pan-European satellite TV giant Sky by Rupert Murdoch's 21st Century Fox entertainment group to undergo an in-depth probe by the competition authorities.

"I confirm that I am minded to refer to a phase two investigation on the grounds of media plurality," culture minister Karen Bradley said in a statement to lawmakers following an assessment from media watchdog Ofcom, despite the tie-up winning the approval of the EU.

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The deal "raises public interest concerns" because it may result in "increased influence" of the Murdoch family over the British news agenda and political process, she added.

The government had announced in March that the £11.4-billion ($14.7-billion, 12.9-billion euro) bid for pay-TV giant Sky by 21st Century Fox would be probed by Ofcom and the Competition and Markets Authority.

Murdoch's Fox had announced in December last year that it had reached a formal agreement to buy the 61-percent stake in Sky which it does not already own.

The transaction would expand the footprint of the media-entertainment powerhouse owned by Murdoch.

However, it also raised fears that it could give the Murdoch family too much control over the British media landscape.

21st Century Fox is one of the world's largest entertainment companies with a vast portfolio of cable, broadcast, film, pay-TV and satellite assets across six continents.

Sky broadcasts a similar offering, including the 24-hour Sky News channel, and provides also internet and telephone services. In late 2014, Sky changed its name from BSkyB after buying Sky Italia and a majority holding in Sky Deutschland.