News Corporation withdraws offer to spin-off Sky News
News Corporation has withdrawn its proposed undertakings to sell of Sky News prompting Culture Secretary Jeremy Hunt to refer the issue to the Competition Commission. Jeremy Hunt has addressed the House of Commons where he announced to a rowdy parliament the news that the proposed bid by News Corp. for BSkyB will be referred to the Competition Commission.
The idea of spinning-off Sky News is one of the key offers from News Corp. to ensure media plurality in the UK. Withdrawing this undertaking left the Culture Secretary no option to refer it to the Competition Commission, something which had previously been shot down. It was announced earlier today that Jeremy Hunt had written to Ofcom and the Office of Fair Trading. Labour leader Ed Miliband and the Deputy Prime Minister Nick Clegg have called on Rupert Murdoch to drop the bid for BSkyB.