Sky takeover bid by Rupert Murdoch: Culture Minister says she is minded to refer deal to regulator

21st Century Fox struck a preliminary deal to snap up the 61 per cent of Sky that it does not already own in December last year

If successful, the deal would likely strengthen the position of James Murdoch – who is both chief executive of Fox and chairman of Sky – in his 86-year-old father’s media empire (Getty)

Culture Secretary Karen Bradley has told MPs that she intends to refer 21st Century Fox’s planned takeover of Sky to the competition regulator.

Speaking in parliament, Ms Bradley said that she was minded to refer the possible takeover by Rupert Murdoch’s company to the CMA on grounds of concerns around media plurality and to ensure the protection and commitment of broadcasting standards.

She had previously already said that she was minded to refer the deal based on concerns that it could give Fox too much control over the media.

On Tuesday - and unexpectedly - she added that she was also concerned about whether the US company would uphold broadcasting standards if the tie-up went ahead.

That announcement immediately sent shares in Sky down by more than 4 per cent before they recovered some of that ground.

Her statement follows an investigation by Ofcom earlier this year after which the regulator raised concerns relating to the compliance procedures that Fox has in place for the broadcast of Fox News in the UK.

That report found that the company only took action to improve its approach to compliance after Ofcom expressed concerns.

Mr Bradley on Tuesday also said that there are concerns relating to corporate governance that she believes warrant a reference.

“I have outstanding non-fanciful concerns about these matters and I am of the view that they should be further considered by the CMA.”

Before she enforces a full referral, the parties involved will have ten days to respond to her proposed decision.

In March this year Mr Murdoch’s company formally notified the European Commission that it was bidding nearly £12bn for the European pay-TV company.

21st Century Fox struck a preliminary deal to snap up the 61 per cent of Sky that it does not already own in December last year.

If successful, the deal would likely strengthen the position of James Murdoch – who is both chief executive of Fox and chairman of Sky – in his 86-year-old father’s media empire.

It would come more than five years after the media tycoon’s last tilt at taking full control of the business through News Corporation.