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News of the [Murdoch] World — Why Now?
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News of the [Murdoch] World

The BBC reports on Rupert’s first move after arriving in London: News Corp’s BSkyB bid referred to regulator

The Culture Secretary, Jeremy Hunt, has referred News Corporation’s bid for BSkyB to the Competition Commission.

The move follows News Corp’s withdrawal of its proposed undertaking to spin off Sky News as part of its attempt to take over the broadcaster.

The spin-off of Sky News had initially been the key condition if News Corp was to be allowed to take over BSkyB.

But in light of the phone-hacking scandal, Mr Hunt had said he was seeking fresh advice from regulators.

BBC business editor Robert Peston said that by withdrawing its plan to spin off Sky News, News Corp was effectively asking for its bid to be referred to the Competition Commission.

News Corp already owns 39% of BSkyB but wants to take full control of the firm.

The Culture Secretary is buried under negative comments about the merger, so Rupert’s withdrawal of the ‘undertaking’ severing ties between BSkyB and Sky News provided him with the opportunity to pass the problem to the Competition Commission.

Rupert would expect this, and probably feels that the Competition Commission is a good deal ‘friendlier’ than other government organs at the moment. He has to feel pressure from his corporate board to do something to calm shareholders.

In other news:

Jeremy Kinsman of the CBC says: Don’t cry for Rupert Murdoch [Canadians don’t usually get shrill about anything but hockey].

8 comments

1 Badtux { 07.12.11 at 3:02 pm }

how you would feel if American politicians on all sides agreed to push a certain agenda

Like their current race to gut Social Security and Medicare? Hmm… you have a point there :).

2 Bryan { 07.12.11 at 10:39 pm }

Media consolidation has progressed to the level in the US that a half dozen corporations control all of the major news outlets, and they don’t bother investigating anything, because that costs money that reduces the bottom line.

Politicians are investigated by local law enforcement, small local papers, and bloggers. As the major media considers politicians as employees working for their corporate interests, they have no incentive to do any reporting.

The only politicians who are ever pursued are the few who oppose the corporate interests

You still have media competition in the UK, we don’t.

There was a reason I put single quotes around ‘friendly’, i.e. to indicate it shouldn’t be taking literally.

3 Badtux { 07.13.11 at 11:26 am }

Duffer, “Screws” competed with other Murdoch publications. You could eliminate all Murdoch publications but one in the UK and it would affect competition not at all, because competition requires there to be diversity of ownership as well as diversity of content. Competing with yourself is not competition!

In any event, welcome news for the UK — Murdoch has apparently abandoned his attempt to purchase Sky TV. I suspect he’s just hoping that he’s going to be allowed to retain his 1/3rd ownership at this point…

4 Bryan { 07.13.11 at 12:13 pm }

1. They put the pieces in place to publish ‘The Sun on Sunday’ before they made ‘News of the World’ go away, so the names were changed to protect the guilty.

2. Ms Palin is a celebrity who works for Rupert, not a viable politician. It was her choice.

I just posted on that, Badtux. It is up to Ofcom to make the decision on the News Corp existing ownership of BSkyB.

5 Badtux { 07.14.11 at 10:34 am }

Duffer, in *this* universe (as vs. your fictional universe) Caribou Barbie was elected *ONCE* as governor of Alaska, and served only two years of her four-year term before resigning to be a “professional celebrity”. You’ve never answered my question — what color are the unicorns in this bizarro-world universe you live in?

– Badtux the Snarky Penguin

6 Bryan { 07.14.11 at 11:52 am }

Ms Palin isn’t running for anything currently, she is promoting a movie release, Mr. Duff, and she stopped during that when the job was only half done, which has been her pattern lately.

I don’t write about her, or even mention her unless someone else brings her up, because she is less relevant to political matters than Lady Gaga.

7 Badtux { 07.14.11 at 3:34 pm }

Duffer, she resigned being a politician when she resigned the governorship of Alaska to become a professional celebrity. I once spent two years in college delivering pizza too, but when I resigned that job upon graduation I ceased to be a professional pizza deliverer and instead graduated to being professional pizza deliveree (IT professionals do like their pizza 😉 ).

— Badtux the Snarky Penguin

8 Bryan { 07.14.11 at 5:28 pm }

Mr. Duff, no one votes for Vice President in US elections, the job is filled by the successful candidate for President.

Pat Paulsen ran for President six times, but he was still considered a comedian. Jerry Springer was elected to the city council, mayor of Cincinnati, Ohio, and considered a run for the Senate in 2003, but he is still a talk show host.

Ms Palin didn’t run for the Alaskan Senate seat in 2010, which would have been a better position if she was actual interested in making a run for President, and has spent all of her time being a celebrity, not a politician. It is her choice, not yours.