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British media join forces against Murdoch buyout
RAPHAEL G. SATTER
Published in The Saudi Gazette on 14 - 10 - 2010

LONDON: He's dominated Britain's media landscape for decades, shaking Fleet Street to its foundations and dueling with the venerable BBC.
But Rupert Murdoch's latest move, an attempt to consolidate his family's sway over the British Sky Broadcasting Group PLC, may be a step too far. An unprecedented media coalition of newspapers and broadcasters has appealed directly to the government to take a close look at the buyout – which they say could have serious consequences for the way Britons get their news.
Rivals want Murdoch's effort to win a 100 percent stake in BSkyB to be vetted by Ofcom, Britain's media regulator, which can advise officials on the merits of the deal and whether it would jeopardize the integrity of Britain's media industry.
The 79-year-old Murdoch's British holdings are already extensive – and controversial. His stable of national newspapers reportedly account for 37 percent of Britain's national press by circulation. The Sun, Britain's biggest daily, boasts of being able to swing elections and The News of The World, The Sun's Sunday sister paper, has been accused of running a massive illegal eavesdropping operation, with reporters spying on politicians, sports stars, celebrities – and even members of the royal family.
His papers' power comes with a big political payoff. The News of The World's former editor, Andy Coulson, is now Prime Minister David Cameron's chief media aide, despite accusations that he knew about the phone hacking – charges he flatly denies.
But with Murdoch now aiming to completely take over BSkyB, in which his News Corp. already owns a 39.1 percent stake, rivals across the industry are mobilizing, seeking legal advice from top London law firm Slaughter and May and lobbying the government to intervene. News Corp. has called its opponents' motives into question and noted that the proposed deal has yet to be finalized.
The Gurdian, one of those behind the push, has also taken the fight to its readers, asking: “Is Rupert Murdoch on course to becoming Britain's Berlusconi?” Italian Premier Silvio Berlusconi is a media magnate-cum-politician accused by the opposition of strangling Italy's democracy.
Damian Tambini, a media industry expert at the London School of Economics, said the Berlusconi comparison was “pushing it a bit,” noting that the Italian leader runs a private media empire and exercises strong influence on the country's public broadcaster.
But he said that the political concerns raised by the buyout were legitimate, explaining that Murdoch and his son James, BSkyB's chairman, were carving out a position which could eventually become unassailable.
“When media groups are allowed to consolidate their position it can be irreversible,” he said.
Full control over BSkyB would be a big boost to Murdoch's international media empire, whose holdings include Fox Filmed Entertainment, which brought out James Cameron's “Avatar,” the Fox News Channel and The Wall Street Journal, acquired nearly three years ago.


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