News Corp/BSkyB: Problem-solving by Rupert Murdoch deserves scepticism. The media mogul needs to convince the UK government that the attempt by his News Corp to take full control of 8 billion pound satellite broadcaster BSkyB will not adversely reduce plurality in the British media. But the mooted solutions – an agreement by News Corp to sell the Times newspaper in the UK, the disposal of BSkyB’s news channel, or even a promise to protect editorial integrity – look problematic.
A disposal would require a credible buyer with no links to Murdoch and strong finances to keep the loss-making operations going regardless of swings in advertising revenue. Neither print nor television news are currently commercially attractive for new entrants. Sky News is only one of three substantial providers of television news in Britain, and makes sense for BSkyB only as part of a bundle of channels.
Even if deep-pocketed buyers emerged, disentangling the assets from Murdoch's wider empire would be fraught. The Times could be sold with long-term printing and distribution contracts but Murdoch might still be able to prioritise runs of his remaining publications.
And while he could not deny any new BSkyB owner access to the satellite platform, the shrewd businessman won’t like giving up control of part of the Sky brand.
History shows that Murdoch hasn’t kept his pledges to keep a safe distance from editorial matters. Murdoch’s acquisitions of the Times in 1981 and Wall Street Journal owner Dow Jones in 2007 both came with assurances to protect editorial independence. Yet senior editors at each newspaper left shortly after Murdoch’s arrival, each grumbling about interference.
It is difficult to envision a mechanism to safeguard editorial independence that Murdoch cannot easily outmanoeuvre. The Times has its own board with independent directors, but it is clearly subjugated to several other boards within News Corp. A five-member special oversight committee at Dow Jones was supposed to be tougher but even this was quickly proved to have no real bite.
Murdoch’s proven ability to get what he wants puts pressure on the government to make doubly sure that the finer details of any concessions agreed with News Corp are watertight.