In a controversial turn, Rupert Murdoch’s 21st Century Fox (NASDAQ:FOX) has reportedly gained EU approval for the takeover of European broadcaster Sky (LON:SKY).
Fox already owns 39 percent of Sky but this deal will allow the American broadcasting giant to take over the remaining 61 percent of the European broadcaster and create a new media empire.
The build up to this decision has stirred much controversy, with critics claiming that Sky News will become more right-wing and “Foxified”.
The campaigning group 38 Degrees created a 300,000-strong petition to the UK culture secretary, pledging that the takeover should be referred to Ofcom for investigation.
“Giving even more control over our media to one man is a serious threat to our democracy. Rupert Murdoch is not fit and proper to take even more control over the news we read and watch.” said Maggie Chao, from 38 Degrees.
The deal will be valued at £11.7 billion, at £10.75 a share in cash.
“Murdoch’s attempt to grow his media empire in Britain is against the public interest,” said Alex Wilks, a campaign director from Avaaz. “Karen Bradley needs to ensure they are subject to maximum scrutiny as she decides whether to hand them more control.”
Despite critics concerns that the takeover will lead to media plurality, 21st Century Fox said in a statement that this would not be the case.
“21CF welcomes a thorough and thoughtful regulatory review. We believe this transaction is in the interest of the UK, its creative economy and its consumers,” it said. “For the past 30 years, 21CF and Sky have been broadcasters of good standing in the UK, a responsibility we take seriously.
“The UK has a thriving creative and media sector that is becoming increasingly more plural and we are confident that this transaction would not result in there being insufficient plurality in the UK. We will continue to work with all relevant regulatory authorities in assisting their reviews.”
“We are confident that the transaction is in the public interest and will stand all tests,” said Fox, in a letter.