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30 June 2011
Last updated at 03:25 ET
The government has said it is "minded to accept" News Corp's assurances about the spin-off of Sky News, but is to consult on some fresh conditions.
The spin-off of Sky News is the key condition if News Corp is to be allowed to take full ownership of BSkyB.
The conditions include having an independent editorial director at Sky News board meetings and for Sky News to continue to be promoted on other Sky channels.
The consultation will run until 8 July.
After that date, the Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt, will take a final decision on whether to allow the takeover or refer it to the Competition Commission.
Earlier advice from the Office of Fair Trading and media regulator Ofcom expressed concern about News Corp owning too much of the British media.
Last June, News Corp offered 700 pence a share for BSkyB, but the board of BSkyB told it to come back with a higher offer.
Since then, BSkyB shares have risen significantly, and were 850p in early trading on Thursday.
Even if the takeover is cleared by the culture secretary next week, the deal could still stumble if a price cannot be agreed.
The company currently holds a 39% stake in BSkyB and owns the Sun and Times newspapers.
News Corp offered to spin off Sky News as an independent company, but continue to fund it, in order to prevent the takeover deal being referred to the Competition Commission.
Mr Hunt launched a consultation on the plans on 3 March, as a result of which he has added four extra conditions to the deal:
The deal has been vigorously opposed by an alliance of other newspapers, including the publishers of the Guardian, the Daily Mail and the Daily Telegraph.
BBC business editor Robert Peston said the ruling meant that the culture secretary accepted that some of the critics of the deal were right, but that the criticisms were not enough for him to feel that he wants to block the takeover.
"He is, he thinks, taking steps to allay the concerns that Sky News will simply become another identikit voice within the News Corp stable rather than maintaining the kind of independence that it's had over many years," he said.
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The spin-off of Sky News is the key condition if News Corp is to be allowed to take full ownership of BSkyB.
The conditions include having an independent editorial director at Sky News board meetings and for Sky News to continue to be promoted on other Sky channels.
The consultation will run until 8 July.
After that date, the Secretary of State for Culture, Olympics, Media and Sport, Jeremy Hunt, will take a final decision on whether to allow the takeover or refer it to the Competition Commission.
Earlier advice from the Office of Fair Trading and media regulator Ofcom expressed concern about News Corp owning too much of the British media.
Last June, News Corp offered 700 pence a share for BSkyB, but the board of BSkyB told it to come back with a higher offer.
Since then, BSkyB shares have risen significantly, and were 850p in early trading on Thursday.
Even if the takeover is cleared by the culture secretary next week, the deal could still stumble if a price cannot be agreed.
The company currently holds a 39% stake in BSkyB and owns the Sun and Times newspapers.
News Corp offered to spin off Sky News as an independent company, but continue to fund it, in order to prevent the takeover deal being referred to the Competition Commission.
Mr Hunt launched a consultation on the plans on 3 March, as a result of which he has added four extra conditions to the deal:
- Sky News board meetings will be attended by an independent director with editorial experience when editorial decisions are to be made
- A monitoring trustee will be appointed to make sure News Corp applies with its undertakings on Sky News
- Other Sky channels will continue to promote Sky News
- Sky News' Articles of Association have to be approved by the secretary of state
The deal has been vigorously opposed by an alliance of other newspapers, including the publishers of the Guardian, the Daily Mail and the Daily Telegraph.
BBC business editor Robert Peston said the ruling meant that the culture secretary accepted that some of the critics of the deal were right, but that the criticisms were not enough for him to feel that he wants to block the takeover.
"He is, he thinks, taking steps to allay the concerns that Sky News will simply become another identikit voice within the News Corp stable rather than maintaining the kind of independence that it's had over many years," he said.
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