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Rupert Murdoch Blasts Anti-News Corp Alliance Opposed To BSkyB Bid

Rupert Murdoch took a swipe at rival media groups striving to block News Corp’s takeover of BSkyB and accused them of petty thinking. In what was billed as his first major speech in the UK since 1989, Murdoch tonight was the inaugural speaker of the Margaret Thatcher Lecture series at the UK’s conservative Center For Policy Studies in London. He said: “When the upstart is too successful, somehow the old interests surface, and restrictions on growth are proposed or imposed. That’s an issue for my company … These are small thinkers who believe their job is to cut the cake up rather than make it bigger.” Murdoch was referring to bosses of some of Britain’s biggest media groups — including the BBC, the Daily Mail, the Telegraph and Channel 4 – who have written a joint letter to British business secretary Vince Cable calling for him to intervene. The government minister has the power to refer News Corp’s proposal to UK media regulator Ofcom (equivalent of America’s FCC), potentially derailing the £8 billion takeover. BSkyB is likely to notify Brussels officially of News Corp’s takeover intentions by the end of October. That starts the clock for the business secretary, who has to make a decision on whether to intervene within 2 weeks after that. 

In what at times was a self-effacing speech – at one point he referred to himself as a “parvenu” – Murdoch paid tribute to the former British prime minister and her legacy. Murdoch also … Read More »

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Fears Grow If Rupert Murdoch Buys BSkyB

Nobody expects UK Business Secretary Vince Cable to block Rupert Murdoch from buying the 61% of Sky he doesn’t already own. But Cable, a popular politician here in Britain, is unhappy about Murdoch’s tightening grip on UK media. The official cannot even start an examination until News Corp has filed its takeover bid with the European Commission in Brussels. I’m told that News Corp is still in pre-notification discussions with the IC and conversations are going back and forth between Brussels and News Corp headquarters in Isleworth, west London. Formal notification should happen within weeks.

Enders Analysis — the TV consultancy which has already written to Cable appealing for him to block News Corp’s Sky takeover on media plurality grounds — estimates that, sometime between 2015-2020, News International and Sky will control 50% of the UK newspaper and television markets respectively. Sky is already bigger than the BBC is terms of broadcasting revenue, earning £5.4 billion compared with the BBC’s £3.6 billion licence fee. “I think the chances of an intervention are very slim indeed,” Enders tells me.

This morning’s Financial Times has called on Cable to investigate the deal. Yet Cable, who’s a Liberal Democrat minister in the government coalition, is experiencing what any British politician – Conservative or Labour – fearful of upsetting the Murdoch press feels right now. Because Murdoch’s power, according to Labour PR adviser Lance Price, is rooted in fear of what he might do as much as in fear of what … Read More »

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