News Corp may offer concessions to secure BSkyB deal

In the wake of findings from media regulator Ofcom, Mr Hunt said the proposed takeover might be against the public interest in terms of media plurality and he was minded to refer it to the Competition Commission.

But Mr Hunt said he was prepared to listen to special “undertakings in lieu” from News Corp as it sought to allay his concerns.

Recent media reports suggested that News Corp has told the Government it might be prepared to make concessions to avoid a lengthy consultation, with separating Sky News from BSkyB one option said to be under review.

Rupert Murdoch’s News Corp, which also owns newspapers including The Sun and The Times, made an £8bn approach in June to buy the 61 per cent of BSkyB it does not already own.

But a report by media watchdog Ofcom recommended that the proposed deal should be investigated further by the Commission.

Mr Hunt said: “News Corporation says that it wishes me to consider undertakings in lieu which it contends could sufficiently alleviate the concerns I have, such that I should accept the undertakings instead of making a reference.”

Mr Hunt said he would ask Ofcom whether any of the measures suggested by News Corp address its concerns over media plurality and requested that the Office of Fair Trading is involved.

If the undertakings are accepted, a 15-day consultation period will commence.

There has been a storm of protest from other major media players, as companies behind the Daily Mail, Daily Telegraph, Guardian and Daily Mirror, together with bosses at broadcasters BBC, Channel 4 and BT, voiced fears that a deal would pose a threat to competition and media plurality.

News Corporation said it believed Ofcom’s analysis to be deficient and added that the level of plurality in the UK has increased since 2003, when the Communications Act was enacted.