News Corp Agree Merger Remedy with Broadcasting Regulators Ofcom over Planned BSkyB Takeover

June 23, 2011

Rupert Murdoch’s News Corp has agreed the final terms of a merger remedy with regulators. The agreement will allow the company to proceed with its planned bid for British Sky Broadcasting.

Ofcom have passed the document to culture secretary Jeremy Hunt, and an announcement that the remedy will be put out for a short consultation period is expected next week.

It is understood that the revised terms have added tightened guarantees offered by News Corp for the editorial and financial independence of a spun-off Sky News company.

Broadcasting regulator Ofcom had originally opposed the takeover, stating a belief that it would affect the diversity of news provision in the UK. The revised document has been offered to answer these concerns.

If Hunt accepts the agreements, he will give merger clearance allowing News Corp to begin takeover negotiations with the independent directors of BSkyB.