News Corp pulls out of BSkyB takeover deal

They think it's all over. It is now.

News Corporation has announced that it no longer intends to make an offer for the entire issued and to be issued share capital of British Sky Broadcasting not already owned by it.

Chase Carey, deputy chairman, president and chief operating officer, News Corporation, commented: "We believed that the proposed acquisition of BSkyB by News Corporation would benefit both companies but it has become clear that it is too difficult to progress in this climate. News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."

NUJ: 'The NoW has gone but the scandal remains'

The NUJ has added its voice to demands for a debate in the Commons on Wednesday (July 13) on the proposed BSkyB deal and is calling for it to be halted pending the outcome of a public inquiry and criminal investigation into phone hacking.

NUJ general secretary Michelle Stanistreet said: “It is vital that this deal is halted until the results of the criminal investigation and the public inquiry are publicly available.

"A survey carried out at the weekend shows that only one in ten members of the public believes Murdoch is a 'fit and proper person' to run BSkyB – a damning insight into the scale of public anger about this scandal.

“The News of the World may have gone, but the scandal remains. With every day that passes, the extent of the cover up perpetrated at the highest level of News International becomes clear. The ‘smoking gun’ emails have been known about for at least four years and level of the hush money payments forked out has been staggering."

She added: “Any future press regulatory system must work to ensure the public can have trust in its media, in the democratically vital service that journalism is. The 'fit and proper' test of media ownership should now be applied to all of Murdoch’s press and media in the UK.”

Sky News to be 'spun off' as Jeremy Hunt gives green light to News Corporation BSkyB deal

Culture secretary Jeremy Hunt has announced that, following advice from Ofcom and the Office of Fair Trading (OFT), he intends to accept undertakings from Rupert Murdoch's News Corporation on their proposed merger with BSkyB in lieu of a referral to the Competition Commission.

The undertakings that News Corporation has offered would involve Sky News being ‘spun-off’ as an independent public limited company.

The shares in that company would be distributed amongst the existing shareholders of BSkyB in line with their shareholdings - News Corporation would therefore retain a 39.1 per cent stake in the new company.

To "ensure editorial independence and integrity in news reporting", the company would have a board made up of a majority of independent directors, including an independent chair, and a corporate governance and editorial committee made up of independent directors (who would have no other News Corporation interests). News Corporation would not be allowed to increase its shareholding in the new company without permission from the Secretary of State for 10 years.

The company would have a ten year carriage agreement and a seven year renewable brand licensing agreement to ensure its financial viability – measures considered by the regulators to be long term in the rapidly-changing media sector.

Hunt said: “I am consulting on proposed undertakings from News Corporation. Informed by advice from the regulators, I believe that these will address concerns about media plurality should the proposed News Corporation/BSkyB merger go ahead. The undertakings offered would ensure that shareholdings in Sky News would remain unchanged, and indeed offer it more independence from News Corporation than it currently has.

“Throughout this process I have been very aware of the potential controversy surrounding this merger. Nothing is more precious to me than the free and independent press for which this country is famous the world over. In order to reassure the public about the way this decision has been taken I have sought and published independent advice at every step of the way, even when not required to do so by law. And I have followed that independent advice.”

Once the Secretary of State has considered responses to the consultation, he will reach a decision on whether he still believes that the undertakings of lieu should still be accepted. If, after consultation, he is still of the view that the undertakings in lieu which News which Corporation has offered address the concerns about media plurality, he will accept them and not refer this merger to the Competition Commission.

News Corporation has welcomed the announcement by Hunt. It said: "The undertakings provide for Sky News to be spun off as a UK publicly-traded company, with News Corporation retaining a 39-percent stake. This will preserve Sky News as a distinct media enterprise with a majority of independent directors.

"While News Corporation continues to believe that the proposed acquisition of the shares in BSkyB that it does not already own will not result in insufficient plurality for anyaudience in the UK, it has submitted this comprehensive proposal in order to avoid alengthy and costly review by the Competition Commission."

The NUJ has opposed News Corporation's bid to take full total control of BSkyB and is planning a joint demostration with the Campaign for Press and Broadcasting Freedom outside the Department for Culture Media and Sport's main building at 2-4 Cockspur Street, London, SW1Y 5DH at 5.30pm today.

NUJ general secretary Jeremy Dear said: "This decision is bad news for democracy and media plurality. The reverberations will be felt across the entire media and political landscape. Previous undertakings given by Rupert Murdoch have proved toothless and illusory. Today's whitewash will prove no different.

"Jeremy Hunt's refusal to refer the bid to the Competition Commission confirms he prefers to act in the interests of News Corps rather than the British public."

BSkyB deal: NUJ gets its retaliation in first

The NUJ and the Campaign for Press and Broadcasting Freedom are already organising a demonstration for the day when Jeremy Hunt makes an announcement about News Corporation's proposal to take full control of BSkyB.

The union says on its website: "We expect the announcement will be any day now. There are rumours that News Corporation is close to an agreement with the government and regulators over its £13.2bn bid for satellite broadcaster British Sky Broadcasting.

"This is the latest development in the campaign to defend plurality in the British media. The NUJ is opposed to Rupert Murdoch’s bid to take total control of satellite broadcaster BSkyB and we are encouraging supporters to come and demonstrate outside the DCMS building in London at 5.30pm on the day of the announcement."

• The Daily Telegraph says Sky News could be hived off into an independent trust so that News Corporation can take full control of BSkyB.
• Robert Peston on his BBC blog says: "News Corporation has offered to sell Sky News and also subsidise the channel for years, to allay concerns about News Corp's planned takeover of all of British Sky Broadcasting. As a result News Corp is likely to get the green light for the takeover from Jeremy Hunt, the Culture Secretary, possibly as soon as tomorrow (March 3)."

FT: News Corp close to agreement on BSkyB

News Corp is close to an agreement with UK regulators over a remedy for concerns about its £13.2bn bid for BSkyB, according to the Financial Times.

The FT says after a series of discussions with the Office of Fair Trading, Rupert Murdoch’s media group is much nearer than previously reported to satisfying objections that combining full ownership of BSkyB with its other assets would reduce the diversity of news provision in the country.

It adds: "Details of the remedy, which could be announced as soon as next week, have not yet emerged, but two people familiar with the discussions said it was “structural” rather than “behavioural”.

"That signals that instead of offering promises about how it will keep BSkyB’s Sky News operations and its News International titles separate, News Corp is discussing ways in which it could surrender control of the 24-hour satellite news channel which would satisfy the OFT."

BBC's Robert Peston: 'Ofcom recommends BSkyB deal be referred to Competition Commission'

BBC business editor Robert Peston says on his blog today that Ofcom has recommended that the bid by Rupert Murdoch's News Corporation to take full control of BSkyB should go to the Competition Commission.

He writes: "I am as sure as I can be that Ofcom has made an unambiguous recommendation that NewsCorp's plan to acquire all of British Sky Broadcasting should be referred to the Competition Commission for further investigation.

"I have come to this view having had a number of conversations with sources close to the media regulator, to News Corporation and to the Department of Culture Media and Sport, which received Ofcom's report on the proposed £7.5bn deal on the last day of 2010.

"What I don't understand is why Jeremy Hunt, the Culture Secretary, has not simply published the report and announced that there will be a further Competition Commission enquiry into whether the takeover restricts plurality in the media (or choice for viewers and readers)."

Peston concludes: "I presume that Mr Hunt will ultimately do what Ofcom recommends and will refer the proposed takeover to the Competition Commission."

• Peston updated his blog to state: "I slightly regret the way I wrote this post, because some of you seem to think this is speculation. It isn’t speculation.What I am saying is very simple: Ofcom has recommended that there should be a full Competition Commission enquiry into News Corporation’s plan to buy all of British Sky Broadcasting. That is a fact."

Fleet Street rivals bury the hatchet - in Murdoch

In an unprecedented alliance Fleet Street rivals, the Guardian, Telegraph, Mail and Mirror have joined with the BBC and Channel 4 to urge business secretary Vince Cable to block Rupert Murdoch's News Corporation taking full control of BSkyB.

In a joint letter to Cable, the alliance of newspaper publishers and broadcasters say the "proposed takeover could have serious and far-reaching consequences for media plurality".

According to the Guardian, the letter is signed by Murdoch MacLennan, chief executive of Telegraph Media Group; Sly Bailey, chief executive of Trinity Mirror; and Andrew Miller, chief executive of Guardian Media Group.

They are joined by Mark Thompson, director general of the BBC; Ian Livingston, chief executive of BT; and David Abraham, chief executive of Channel 4.

• The Finacial Times has signalled its opposition to the proposed bid in a leader article.