Murdoch bid ‘more likely to succeed’ after Cable comment
Media analysts tell Channel 4 News that Business Secretary Vince Cable’s remarks about Rupert Murdoch make it more likely his bid to take over BSkyB will go through.
Speaking to undercover reporters from the Daily Telegraph who had been posing as Liberal Democrat supporters, Mr Cable said he had “declared war” on Mr Murdoch, whose company News Corporation has launched a bid to buy a majority stake in satellite broadcaster BSkyB, which it currently part-owns.
BSkyB shares rose today to their highest level since the takeover attempt was launched in June. The view of the markets was shared by analysts Channel 4 News has spoken to.
As a result of the row, Prime Minister David Cameron stripped Mr Cable of his responsibilities for media regulation, which have been handed to Culture Secretary Jeremy Hunt.
Mr Hunt, who is due to receive a report on News Corp’s bid from regulator Ofcom at the end of the month, has the final decision.
Virtually impossible for any other member of the coalition to exercise his political judgment. David Elstein, chairman, openDemocracy
David Elstein, chairman of openDemocracy and a former chief executive of Channel 5, said: “It is one of the laws of unintended consequences that when a leading politician in the coalition expresses his political preference, it really makes it virtually impossible for any other member of the coalition to exercise his political judgment.
“I cannot begin to see what Ofcom can say other than that it is no threat to media plurality. He (Jeremy Hunt) would just say Ofcom have looked at it and they have approved it.”
Dr Toby Syfret, media analyst at Enders Analysis, said: “It improves the chances of it going through, but it will really depend on what Ofcom comes up with and whether it goes before the Competition Commission. I don’t think it alters what Ofcom has to do. If there’s a significant competition issue that will come up.”
Leaked to BBC
Questions have been asked about why Mr Cable’s comments were leaked to, and revealed by, the BBC’s business editor Robert Peston before they appeared on the Telegraph website yesterday.
After secretly recording Mr Cable, the Telegraph had earlier published his threat to resign and bring down the Coalition Government if he was “pushed too far” by the Conservatives.
Mr Peston said in his blog today: “The whistleblower, who gave me the full recording, told me that the Telegraph’s omission of these sections about Mr Murdoch was a commercial decision, motivated by the fact that the Telegraph – like Mr Cable – would rather News Corporation does not end up as 100 per cent owner of BSkyB.”
Telegraph statement
The Telegraph said in a statement: “It is utter nonsense to suggest that the Daily Telegraph did not publish the comments from Vince Cable on the Rupert Murdoch takeover of BSkyB for commercial reasons.
“It was an editorial decision to focus this morning on Cable’s comments on the Coalition because they were of wider interest to our readers. We have made it clear, in the paper, online and in broadcast interviews today, that we would be publishing further comments in the forthcoming days.”
Mr Elstein said the newspaper would have known that Mr Cable’s remarks weakened its position on Mr Murdoch’s bid. “They must have realised Vince had shot a giant torpedo through their case”.