British regulator investigating Murdochs, BSkyB




Britain’s communications regulator is investigating whether British Sky Broadcasting is a “fit and proper” owner of a broadcasting license in the wake of phone-hacking and bribery scandals facing News Corp.,

the

Financial Times

reported.

News Corp. holds a 39.1% stake in BSkyB. The investigation, which began in January, has escalated, according to the

FT

report.

The

FT

article said the increased scrutiny is “a setback to James Murdoch,” who remains chairman of BSkyB, although he stepped down as executive chairman of News Corp.’s News International unit last month.

The report noted that if the regulator rules against James Murdoch and News Corp., “it could threaten James Murdoch’s position as chairman of BSkyB or trigger a process that would force News Corp., chaired by Rupert Murdoch, to cut its stake in BSkyB to a level at which it was no longer deemed to exercise control.”

Last year, News Corp. withdrew a bid to take full control of BSkyB as the extent of the phone-hacking scandal was made public. (Source:

Financial Times,

March 9, 2012.)

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