Rupert Murdoch’s powerful UK news arm reversed course this month and admitted its role in a long-running phone hacking scandal that was viewed as possibly jeopardising News Corp’s planned $14 billion purchase of pay-TV group BSkyB.
Asked in parliament if he would postpone his decision on the merger until a criminal probe into phone hacking was over, Culture Secretary Jeremy Hunt said: “The decision I have to take with respect to the Sky merger is about media plurality and we are in the process of taking that decision.”
“But I am very concerned about the news to do with phone hacking. It is a criminal offense,” he said.
“Two people have already gone to prison, three people have been arrested and the police must ... follow their investigations wherever they lead because the public must have confidence that in a free press, the press use that freedom responsibly,” he said.
News International, parent company of Britain’s top-selling News of the World tabloid, had always vigorously denied it knew journalists were hacking the phones of members of the royal family, politicians, celebrities and sports stars, and blamed a handful of “rogue reporters” for the scandal.
But it said on April 8 it would admit liability and pay compensation in eight cases — although many more believe they were targeted.
News Corp’s planned BSkyB deal has angered other news operators who fear the group’s growing influence over Britain’s media. But it took a huge step toward securing its goal in March when Britain accepted its proposals to ease competition concerns.
In return for clearance, News Corp will spin off the loss-making Sky News channel and guarantee its future by giving it a 10-year carriage deal on the Sky TV platform and a seven-year agreement to use the Sky name.
A consultation to seek reaction to the Sky News spin-off proposal has now finished and the government’s final decision is expected soon.
