News Corp offers to offload Sky News to secure BSkyB deal
News Corp has indicated to the British government that it is prepared to offload Sky News, amongst other options, in a bid to facilitate its take over of British Sky Broadcasting.
The media group has been locked in discussions with the department for Culture, Media and Sport after the broadcasting regulator Ofcom recommended the government refer the decision to the Competition Commission.
Concerns have been raised that the creation of such a giant news entity in the UK would reduce the diversity of news provision below a level deemed to be acceptable.
Analysts believe News Corp is keen to rush through a deal to avoid a lengthy review, which could take up to eight months and cost News Corp up to hundreds of millions as market growth inflates BSkyB’s price.
James Murdoch, who heads up News Corp Europe and Asia, is said to be putting all options on the table to pre-empt any such referral.
Sky News is currently losing between £30-£40m a year with their being little prospect that a white knight would emerge with pockets deep enough to continue subsidising the platform.