MediaGuardian:
Vince Cable has ordered media regulator Ofcom to examine News Corporation's £12bn bid to take control of BSkyB, as revealed by MediaGuardian.co.uk last night.Which is possibly good news for VM customers hoping to see Sky Atlantic on our shiny new TiVo boxes when it launches next year: will Sky really look to prove its muscle in the market by denying the only other viable pay TV platform a new, highly promoted channel whilst being investigated by Ofcom (and likely the Competition Commission, too)?
Cable has issued an intervention notice under the Enterprise Act ordering Ofcom to investigate the proposed transaction, which would see News Corporation take control of the 61% of the satellite broadcaster it does not already own, on public interest grounds.
"On the basis of the information and submissions available to me, I have decided that it is appropriate to issue an intervention notice in this particular case," said Cable. "The independent experts at Ofcom will now investigate and report to me on the media plurality issues that may arise from this proposed acquisition."
Cable has given Ofcom until 31 December to submit a report examining the impact of the proposed acquisition on media plurality in the market. On the basis of the report Cable will then decide whether to refer the deal to the Competition Commission.
But then again, the Murdochs are rarely predictable and more often than not rise to a fight rather than play by the rules. Here's hoping though.
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