James Murdoch has warned the UK government that News Corp could move overseas if the regulator blocks its £7.8 billion ($12.5 billion) bid for BSkyB. News Corp’s European and Asian boss made the veiled threat talking to investment bank analysts in Barcelona. The government must decide whether it wants to risk “jeopardising an £8 billion investment in the UK” with a prolonged investigation, Murdoch said, noting that News Corp could relocate some of its most innovative projects to more “welcoming” countries if the UK blocks its bid for BSkyB. “From India to Italy and to Germany, countries are becoming more welcoming of investment and more welcoming of what we can bring,” Murdoch said.
Mark Thompson has called on the British government to intervene in News Corp’s bid to take full control of BSkyB. Speaking on PBS’s Charlie Rose Show in New York, he agreed there was potential for an abuse of power by the Murdoch media group if BSkyB, the UK’s biggest broadcaster in terms of its £5.4 billion revenue, comes under the same ownership as News International, the UK’s largest newspaper group. Combining BSkyB with News International, owner of The Sun, The Times and The Sunday Times, raised issues of “how you ensure plurality in the system”, Thompson warned. He said that the UK government should look at those issues – although he stopped short of calling for the deal to be blocked.