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00:00:01
>> Rupert Murdoch's plan to grow his Fox Empire by buying British media titan Sky has hit another setback. UK regulators on Tuesday said that the mogul's proposed purchase of the 61% he doesn't already own would give him too much influence over news coverage. The 86 year old already controls a large chunk of all media in the UK, nearly a third of Britain's consumers products.
00:00:28
Now, an initial ruling from the UK's competition and markets authority, or CMA, decided that plurality could be an issue. Reuters Kate Holten explains.>> He thought that by separating his companies through the television assets and through the newspapers that he had done enough to be able to buy it.
00:00:47
He has been told today that the government, the regulator, still has concerns over his overall control. So he's not there yet. Analysts are divided as to whether it means the deal gets blocked or whether it done. The share price for Sky is up slightly, it's up about 2.5% on the belief that there can be a way to find a solution to the Sky News issue, which will enable to complete the deal.
00:01:09
>> Those possible fixes to allow the $15 billion deal to proceed, potentially include disposing of the award winning but loss making Sky News. Alongside this, Murdoch has much bigger concerns. A plan by the Walt Disney company to buy many of his global assets, including Sky. Disney had hoped that Murdoch would have taken full control of Sky in time for its takeover.
00:01:33
The CMA will release its final ruling on May 1st, but until then, nothing is certain.>> Murdoch should get his way and then be able to sell it to Disney, yes, but who knows. I mean, every step of this deal, there's been an unexpected development. It's been going on since 2010, so you can't really ever say yes until it's done.
00:01:54
But it looks like it could be resolved towards May and then maybe with a final decision in the summer from the government.>> There was one positive, the CMA also considered Murdoch's commitment to broadcasting standards in the light of the UK's historic phone hacking scandal. On that potential stumbling block, the CMA ruled in his favor.