Sky is threatening to shut down Sky News if it stops Rupert Murdoch’s Fox media business buying the broadcaster for £11.7billion, it was revealed today.
The takeover is being investigated by the the Competition and Markets Authority (CMA) amid fears the billionaire Australian’s media empire would be too powerful.
Sky has submitted evidence to the CMA about the deal and said it would ‘review its position’ on the ‘continued provision of Sky News’ if it stopped the Fox takeover or any ‘other corporate opportunities’.
Sky News employs hundreds of journalists and is viewed the main alternative broadcaster to BBC News in Britain.
But it is said to lose Sky tens of millions a year and although it would be a last resort, bosses are believed to be making a credible threat.
Sky is threatening to shut down Sky News (pictured is star presenter Sarah Jane Mee) if it stops Rupert Murdoch’s Fox media business buying the broadcaster for £11.7billion
Mr Murdoch’s Fox’s £11.7bn bid to take over control of the 61pc of Sky it does not already own is proving controversial with Culture Secretary Karen Bradley set to make the final decision
Fox’s £11.7bn bid to take over control of the 61pc of Sky it does not already own is proving controversial.
There are concerns that the move would give Mr Murdoch – who currently owns 39pc of Sky and the Sun and The Times newspapers through his News Corp business – too much influence over the UK news agenda.
Last month the CMA outlined the scope of its inquiry into how the deal would affect UK media and broadcasting standards, and invited submissions for the six-month investigation.
Among the areas it will look at is whether the Murdoch family’s ability to control or influence editorial and commercial decisions at Sky News will change.
It will also asses their ability to ‘influence the political agenda’ and how this could change after a takeover, alongside more general scrutiny of the potential effect on the number and variety of British media, including the ‘range of viewpoints’.
The decision on whether to approve 21st Century Fox’s £11.7 billion takeover bid for Sky will be based on evidence and not ‘personal emotion or feelings’, the Culture Secretary told MPs last months.
Karen Bradley said: ‘The final decision is the decision of the Secretary of State – it is based on evidence.
‘It is not based on personal emotion or feelings or views about the people involved.’
She added: ‘I have to be mindful of the fact there’s two parties who would like to merge for good commercial reasons, while at the same time… ensuring the public interest tests are met to make sure we end up with a media that works for the country.’
The £11.7billion takeover bid has been met with fierce opposition from senior Labour figures
Last night it emerged Mr Murdoch has also held talks about selling off 21st Century Fox’s film and TV studios to Disney – which some experts claim suggests the tycoon believes that the Sky – Fox takeover is unlikely to go through.
If agreed, the multi-billion-dollar sale would make Disney a dominant force in filmmaking.
It comes as Mr Murdoch is hoping to buy the remaining stake in Sky that he does not currently own.
Under the proposed deal, 21st Century Fox would be transformed into a TV and news company with Fox News and Sky News, while Disney would take on National Geographic and FX Networks, US business news channel CNBC reported last night.
Disney is also reportedly seeking to strike an agreement that would see it take control of parts of Sky, thought to comprise the broadcaster’s TV production business.
The talks come as media firms seek to fend off the threat posed by online streaming giants Netflix and Amazon Prime.
Shares in 21st Century Fox rose 8.3 per cent following the news.
Disney and 21st Century Fox have been holding on-and-off talks over the last few weeks. While the two sides are not currently in discussions, it is understood that the deal is not completely off the table.
The potentially controversial proposal would reshape the media landscape if it succeeds, and comes amid a wave of consolidation in the industry.
Giants such as Netflix, Amazon, Facebook and Google have changed the way people consumer media, and Disney has been left playing catch-up.
The company is now in the process of creating its own streaming service for sports and another for its key franchises such as Star Wars and Marvel. It also recently announced that it will be withdrawing all its films from Netflix.
New deal: The offer proposed by Fox for Sky is their second takeover attempt in five years
The opportunity to control another film studio and significant TV production business is therefore attractive for Disney. Fox’s recent hits have included The Planet of the Apes and X-Men franchises.
Taking over parts of Sky would also give it access to the UK and other international markets like Germany and Italy.
Under American law Disney cannot own two broadcast news networks. It is therefore not seeking to buy Fox’s sports programme division for fear of running foul of antitrust laws with its own ESPN network.
Disney is also not seeking to purchase 21st Century Fox’s local broadcasting business.
A Disney spokesman did not immediately respond to a request for a response. Fox declined to comment.