325 lines
12 KiB
Plaintext
Executable File
325 lines
12 KiB
Plaintext
Executable File
finance
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newsbysector
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mediatechnologyandtelecoms
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media
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8110815
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-----
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# Q&A: News Corp bid for BSkyB
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## Vince Cable, the Business Secretary, has intervened in News Corporation's
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$12.5bn bid to take full ownership of BSkyB, ordering regulator Ofcom to
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examine whether it is in the public interest. Here is a Q&A on what it means.
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![Q&A: News Corp bid for BSkyB][1]
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Q&A: News Corp bid for BSkyB Photo: NEWSCAST
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By Amanda Andrews 5:50PM GMT 04 Nov 2010
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[Comments][2]
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**What does [Vince Cable's referral][3] to the media regulator mean? **
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Not only will this delay the process, creating further uncertainty for BSkyB,
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but the decision is proof of the power of lobbying. The objections from media
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groups and others meant Mr Cable had no choice but to investigate. The
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decision means the subject of "media plurailty" will be scrutinised carefully
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and be the subject of much debate. A **[debate in the House of Lords][4]** on
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the day of the referral provoked much discussion against the deal on the
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grounds of media plurality.
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**What is media plurality and the public interest test?**
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Plurality of the media includes both diversity of ownership, to ensure
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ownership is spread between a number of individuals, and diversity of content,
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to ensure a wide range of views are represented.
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Ofcom has a duty to advise the Secretary of State on whether the merger is in
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the public interest via the application of the public interest tests under the
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merger control regime set out in the Enterprise Act. The Secretary of State
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will then decide whether to refer the merger to the Competition Commission.
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## Related Articles
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* [News Corp bid for BSkyB a 'chilling prospect', say peers][5]
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04 Nov 2010
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* [Cable intervenes in News Corp's BSkyB bid][6]
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04 Nov 2010
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* [Phone hacking scandal will not affect BSKYB take over][7]
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11 Apr 2011
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**How does this affect the deal?**
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A deal could come next year, but News Corp first has to dodge a number of
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regulatory hurdles. The European Commission was notified formally of the bid
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on November 3 and will launch a probe looking at competition issues. It will
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publish a report on December 8. Mr Cable will decide whether to refer the
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matter to the UK's Competition Commission once he has Ofcom's report by
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December 31. If he does, the Competition Commission will have up to 24 weeks
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to conduct a full-investigation and return its decision to the business
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secretary. Cable will then have 30 days to deliver his final decision on
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whether to clear or block the deal
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**What would a takeover of BSkyB by News Corp mean?**
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BSkyB customers could be offered more bundled, cross promotional deals with
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News Corp's other UK assets, particularly now News International titles, such
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as _The Times_, have been put behind a pay wall. News Corporation may consider
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making pan-European television and film production acquisitions - a potential
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move which will be considered by the European Commission.
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**How dominant is News Corp in the UK market?**
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The group, which owns newspapers including _The Times_ and _The Sun _already
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controls 37pc of the national newspaper market. News Corp's competitors say
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the Sky takeover would create an group of unrivalled power in the UK media
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market, with a dominant position in newspapers and full ownership of a pay TV
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company set for annual pre-tax profits of more than £1bn next year
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**What are opponents saying?**
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Media groups, including the BBC, Channel 4 and the owners of the Telegraph
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Media Group and the _Daily Mail_, wrote to Mr Cable last month urging him to
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refer the bid to Ofcom. In a combined letter, the media groups asked his to
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block the plans over fears the deal posed a threat to competition and media
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plurality. Separately, leading peers today said News Corp taking full control
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of BSkyB would be a "chilling prospect", "deeply harmful" and give the US
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media group "an unprecedented level of control".
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**What is News Corp saying?**
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News Corp said it is "confident that the proposed investment will not
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adversely affect media plurality in the UK".
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**Why is the European Commission involved?**
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Due to the scale of the £12bn plus deal, the European Commission was forced to
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launch a probe on competition grounds. If the Commission opts for a further,
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phase II investigation, this could a further 125 working days.
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**What was News Corp's offer for BSkyB?**
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In June, News Corp made a 700p-a-share offer for BSkyB which valued the
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company around £12bn - a figure described as significantly undervaluing the
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asset by the BSkyB board. Nicholas Ferguson, the deputy chairman of BSkyB, has
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said no figure below 800p is acceptable.
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[What are these?][9]
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* Share: [Share][8] [ ][10] [ ][11]
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[Tweet][12]
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http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/med
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ia/8110815/QandA-News-Corp-bid-for-BSkyB.html
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Telegraph
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## [Media][13]
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* ### [Finance »][14]
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* ### [Media and Telecoms »][15]
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In finance
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[![The top 10 biggest spending advertisers of 2010][16] ][17]
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### [10 biggest spending advertisers of 2010][17]
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[![ITV's biggest hits in pictures][18] ][19]
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### [ITV's biggest 2010 hits in pictures][19]
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[![Q&A: News Corp bid for BSkyB][20] ][21]
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### [Q&A: News Corp bid for BSkyB][21]
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[![][22] ][23]
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### [Hands v Wormsley: the lawyers, the laughs and those chocolate
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biscuits][23]
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[![Welcome to the information age ? 174 newspapers a day][24]][25]
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### [Media & Publishing vacancies at Telegraph Jobs][25]
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[X][8] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][9]
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Share:
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* [ ][8]
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* [ ][10]
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* [ ][11]
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* [Tweet][12]
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* Advertisement
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![][26]
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telegraphuk
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Please enable JavaScript to view the [comments powered by Disqus.][27] [blog
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comments powered by Disqus][28]
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Advertisement
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[Market Data »][29]
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Finance Most Viewed
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* TODAY
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* PAST WEEK
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* PAST MONTH
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1. [Britain faces bleak two years after feeble economic growth][30]
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2. [Look, even Sweden charges for healthcare][31]
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3. [BMW blames speculators as aluminium costs rise][32]
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4. [US consumers in spending retreat][33]
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5. [Google sued by PayPal in Silicon Valley's mobile war][34]
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1. [What happens when Greece defaults][35]
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2. [Dominique Strauss-Kahn: DNA samples confirm sperm traces on maid's
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dress][36]
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3. [It's ever more obvious, Greece must leave the euro][37]
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4. [Dominique Strauss-Kahn: new claims of sexual misconduct add to pressure
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on former IMF chief][38]
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5. [How the euro crisis end game might look][39]
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1. [What happens when Greece defaults][35]
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2. [Dominique Strauss-Kahn: IMF head 'hired prostitutes from Manhattan
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madam'][40]
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3. [Dominique Strauss-Kahn: DNA samples confirm sperm traces on maid's
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dress][36]
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4. [A tax-based alternative to the Alternative Vote][41]
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5. [Dominique Strauss-Kahn: maid experienced 'extraordinary trauma'][42]
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Advertisement
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Classified Advertising
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* [Media Jobs][43]
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* [Travel][44]
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* [Culture][45]
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Loading
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[Find your ideal job with Telegraph Jobs][46]
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