MGEITF 2010: News Corp and Sky… should it be allowed?

News Corp’s controversial plans for a full takeover of Sky came under scrutiny at this year’s MediaGuardian International Television Festival.

Culture secretary Jeremy Hunt strategically ducked any questions relating to Rupert Murdoch’s plans, preferring to pass the buck to Vince Cable – who will ultimately make the decision, according to Hunt.

He was careful to play-down the government’s relationship with Murdoch. When asked whether the government was concerned about News Corp’s intention to buy out the remaining shares of Sky, Hunt simply said: “We have rules in place and there is no need to change them.”

John Mayer asked the question for a second time after failing to get a response from Hunt, saying: “There is a reason why competition laws don’t apply to Sky. It is wrong for Murdoch to have a dominating position in the TV market… he is too close to politicians.” Mayer also pointed out that this kind of takeover would not be allowed in the USA or Australia.

At the ‘MGEITF Question Time’ session, panellist David Elstein took a far less passionate view. He suggested that it makes no odds either way – “Some would say having a 39% share in a company already means he owns it…  Murdoch runs it already.”

Elstein seemed to think News Corp’s low offer – 700p a share for the remaining 61%, which values the company at about £12.25 billion – is more of an issue to whether this goes ahead.

The BBC director general Mark Thompson, did not need to pass any comment on the potential News Corp deal to make his feelings known. Whilst stating this was an issue for regulators and government, he was quick to add that News Corp is already “the dominant media force in this country”.