News Corp Withdraws Plans to Spin off Sky News as a Result of UK Government Actions

Monday, 11 July 2011 18:36

Written by Kevin Coy

News Corporation has announced that should the UK Secretary of State for Culture, Olympics, Media and Sport go through with his announcement to Parliament that he will refer the planned acquisition of BSkyB, that the company will withdaw its undertaking to spin off Sky News.

The move throws possible doubt into the future of the UK's first news network, and sister channel to Fox News in the United States, especially as the UK government has already given the view that News Corp would not be able to acquire BSkyB without the disposal of Sky News.

In a statement, News Corporation said;

"News Corporation today announces that it is withdrawing its proposed undertakings in lieu of reference to the Competition Commission with respect to its proposed acquisition of BSkyB.

"Should the Secretary of State for Culture, Olympics, Media and Sport decide on this basis to refer the proposed transaction to the Competition Commission for a detailed review, News Corporation is ready to engage with the Competition Commission on substance.

"News Corporation continues to believe that, taking into account the only relevant legal test, its proposed acquisition will not lead to there being insufficient plurality in news provision in the UK."

Sky News is not thought to be at immediate risk of closure, however as Rupert Murdoch has shown in the past week, he is not unwilling to flex his muscles and close a leading news brand in the UK in order to reach his aims.

Last Thursday, it was announced that the UK's leading Sunday newspaper, the News of the World would close, leading to the loss of over 200 jobs.