Sky News must be sold, says Hancock

SKY NEWS must be sold if Rupert Murdoch’s 21st Century Fox is to secure Government approval for an £11.7bn takeover of broadcaster Sky.

The Culture Secretary Matt Hancock said that in order to address media plurality concerns flagged by the Competition and Markets Authority, he favours “divesting Sky News to a suitable third party”.

The CMA raised the possibility of “increased influence of the Murdoch Family Trust over public opinion and the UK’s political agenda”, should Fox get its hands on Sky News.

Mr Hancock told Parliament he will now consult over the next 15 days to finalise details of the plans to divest Sky News before making a final decision.

But he said if terms of a sale of Sky News cannot be agreed, the “only effective remedy now would be to block the merger altogether”.

A separate £22bn bid for Sky from US broadcasting giant Comcast was cleared by Mr Hancock, setting the stage for a bidding war with Fox.

Rupert Murdoch’s Fox is attempting to buy the 61 per cent of Sky that it does not already own, but the bid has been complicated by competition concerns, media plurality fears and rival offers.

Sky shares were up marginally on the day.

“I agree with the CMA that divesting Sky News to Disney, as proposed by Fox, or to an alternative suitable buyer, with an agreement to ensure it is funded for at least 10 years, is likely to be the most proportionate and effective remedy for the public interest concerns that have been identified,” Mr Hancock added.