Jeremy Hunt has confirmed that Rupert Murdoch’s News Corporation will be allowed to takeover BSkyB, after hammering out “a robust set of undertakings” on plans for Sky News to be ‘spun off’.

News Corp has spent four months persuading Hunt and media regulators that making the 24-hour news service an independent listed company will allay concerns about plurality. Murdoch also owns the Sun, News of the World and the Times newspapers.

An independent director “with senior journalism expertise” will now oversee editorial matters at Sky News. Sky will retain a 39.1 per cent shareholding in the spin off — which can’t be increased — and “continue to cross-promote the 24 hour news service on its channels”, according to MediaGuardian.

A monitoring trustee will be put in charge of ensuring News Corp complies with the undertakings agreed upon.

“The regulators have confirmed that the proposed undertakings are still sufficient to ensure media plurality,” Hunt said.

“I could have decided to accept the original undertakings but a number of suggestions were made in response to the consultation which could further strengthen the undertakings, particularly around editorial independence, business viability and the articles of association.”

The added undertakings will now be put out to further consultation until midday on Friday 8 July.

In the meantime, Murdoch needs to barter for a price with current stockholders, who want a reported £4bn more than his original offer of £7.8bn. He already owns 39 per cent of of the broadcaster.

(Source: MediaGuardian)

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