UK Expands Probe Into 21st Century Fox Bid For Sky

(RTTNews) - 21st Century Fox noted today's statement by the Secretary of State for Digital, Culture, Media and Sport that she still intends to refer 21CF's proposed acquisition of the remaining shares of Sky to the Competition and Markets Authority (CMA) for a further in-depth review of the media plurality public interest consideration, and she is now minded to refer the acquisition also in respect to the commitment to broadcasting standards subject to a period of consultation, having previously stated she was minded to clear the combination on that ground.

Ofcom, the expert independent regulator on UK broadcasting, undertook a robust and rigorous review of commitment to the Broadcast Code, concluding 21CF and Sky have records of compliance consistent with other comparable license holders, including the Public Service Broadcasters. Furthermore, in its advice to the DCMS dated August 25, 2017, Ofcom reiterated its position having reviewed new representations, stating: "We consider there are not sufficient concerns that may justify a reference in relation to the broadcast standards consideration." We are therefore disappointed that the Secretary of State has chosen not to follow the unequivocal advice of the independent regulator, which is the expert body tasked with enforcing the Broadcast Code. As the correspondence between DCMS and Ofcom makes clear, we do not believe that there are grounds for the Secretary of State to change her previous position.

21CF said that it is surprised that after independent regulatory scrutiny and advice, and over four months to examine the case, the Secretary of State is still unable to form an opinion. It urges the Secretary of State to take a final decision quickly. It looks forward to engaging with the CMA on their in-depth review as soon as possible.

Subject to any further delays in the decision-making process, the company anticipates that the transaction will close by June 30, 2018.