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London: Rupert Murdoch's $18.7 billion bid to takeover Sky News in the UK has been referred to the media regulator, with the Tory government citing concerns about "broadcasting standards" and "media plurality."
Ofcom, Britain's media regulator, will spend the next forty working days investigating whether the media mogul is a "fit and proper" person to acquire total ownership of Sky and if the takeover will further shrink Britain's news media offerings, with a report due on May 16.
Mr Murdoch's proposed takeover of Sky in the UK mirrors the acquisition of Australia's Sky News last December, when News Corp bought out the subscription-only news channel.
Culture Secretary Karen Bradley said she was "minded" to refer the takeover to Ofcom earlier this month on the grounds of media plurality and broadcasting standards.
Representations made by 21st Century Fox since then had not assuaged her concerns.
"I'm of the view that it remains both important, given the issues raised, and wholly appropriate for me to seek comprehensive advice from Ofcom on these public consideration issues," the Secretary told the Commons.
In a statement, 21st Century Fox said it "looks forward to working with UK authorities".
"We are confident that a thorough review of our track record over 30 years will underscore our commitment to upholding high broadcast standards, and will demonstrate that the transaction will not result in there being insufficient plurality in the UK," the company said.
"The media market has changed dramatically in recent years, as has our business.
"We believe our proposed £11.7 billion investment will benefit the UK's creative industries. We look forward to continuing to work with all stakeholders and are confident that the transaction will be approved."
Labour's Deputy Leader Tom Watson said the opposition welcomed the review.
Mr Watson asked Ms Bradley to confirm whether the regulator will take into account the phone hacking scandal at the now-defunct News of the World newspaper, and the sexual harrassment scandal engulfing Fox News in the United States.
"Is it her view that Ofcom should examine those issues?" he asked.
Mr Watson also questioned whether forty days would be enough time for the regulator to assess whether the Murdochs are "fit and proper" to hold a broadcasting licence.
The National Union of Journalists (NUJ) said the merger should not go ahead because it would lead to a further concentration of Britain's news environment into the hands of the Murdochs.
According to the NUJ, 71 per cent of the nation's newspaper circulation is controlled by just three companies.
"Sky and NewsCorp are already the biggest commercial news producers in the UK. Sky News Radio is the main news supplier to more than 280 commercial stations," the union said.
"Sky's only real competitor in radio news production is the BBC. In television, there are now only two UK-based 24-hour TV news channels – Sky News and the BBC News Channel.
"The hacking scandal and its aftermath have demonstrated how concentrations of media power can be used to harm journalists, journalism and democracy".
Murdoch's 21st Century Fox first canvassed in early December the idea of buying the 61 per cent of Sky that it does not already own. It formally announced its takeover intentions on December 15, saying the acquisition of Sky would add to its global media brands including Fox, National Geographic and STAR.
The Murdoch-owned News Corp already owns two newspapers in Britain: The Times of London broadsheet and tabloid The Sun.
Rupert Murdoch and his son Lachlan are executive chairs of 21st Century Fox. James Murdoch is the CEO. Rupert Murdoch is also the executive chairman of News Corp and Lachlan is co-chair.