London – January 25, 2011 – News Corporation continues to believe that its proposed acquisition of the shares in BSkyB it does not own will not lead to there being insufficient plurality in news provision in the UK. The company has put forward extensive and detailed evidence that the level of plurality in the UK has increased since 2003 (when the Communications Act was enacted) - and since the ITV plurality review in 2007 when no concerns were found about the sufficiency of plurality.
News Corporation believes that Ofcom's analysis is deficient in a number of ways. While Ofcom acknowledges that the combination of News Corporation and BSkyB would have a minimal impact on consumers and would not enhance News Corporation's ability to influence the news agenda, it nevertheless concludes that the transaction may be expected to operate against the public interest.
News Corporation has made a submission to the Department of Culture, Media and Sport setting out a number of issues with the Ofcom report. However, in the interests of progressing to a transaction, News Corporation has submitted an undertaking that we believe addresses Ofcom's concerns. We will continue to engage constructively with the regulatory process.
Notes to Editors:
On 21 December 2010, the European Commission cleared News Corporation's proposed acquisition of BSkyB under EU merger rules. The Commission concluded that the transaction would not impede effective competition in the European Economic Area or any substantial part of it.
News Corporation (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV) had total assets as of September 30, 2010 of approximately US$56 billion and total annual revenues of approximately US$33 billion. News Corporation is a diversified global media company with operations in six industry segments: cable network programming; filmed entertainment; television; direct broadcast satellite television; publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America.
Alice Macandrew +44 (0) 20 7782 6013
Miranda Higham +44 (0) 20 7782 6462