Sky News could be shut down to allow Murdoch's takeover of broadcaster, Sky says

Bid for channel is under investigation over concerns about its impact on media plurality

The competition regulator is concerned the takeover would give Mr Murdoch, who has long been one of the most influential media barons in the UK, too much control of the British media (AP)

Sky News could be shut down if Sky’s ownership of the channel proves to obstruct the company’s multi-billion-pound takeover by Rupert Murdoch’s Twenty-First Century Fox.

Fox’s bid for Sky is currently being investigated by the Competition Markets Authority (CMA), with particular reference to the media tycoon's commitment to broadcasting standards, and the deal’s impact on media plurality.

At the end of September, Karen Bradley, the Secretary of State for Digital, Culture, Media and Sport, referred the proposed deal to the CMA on public-interest grounds.

In a submission made to the CMA last month but published by the regulator on Tuesday, Sky said it “would likely be prompted to review” its position “in the event that the continued provision of Sky News in its current form unduly impeded [..] corporate opportunities available in relation to Sky’s broader business".

The broadcaster added: “The CMA should not in its assessment simply assume the ‘continued provision of Sky News’ and its current contribution to plurality, ‘absent the transaction’."

The competition regulator has called for evidence on the effect a merger would have on “media plurality and a genuine commitment to broadcasting standards”.

Setting out the scope for their investigation last month, the CMA said that it would aim to ensure diversity of viewpoints that are available and consumed, and prevent any one media owner or voice having too much influence over public opinion and the political agenda.

It is concerned the takeover would give Mr Murdoch, who has long been one of the most influential media barons in the UK, too much control of the British media.

In March, Mr Murdoch’s company formally notified the European Commission that it was bidding nearly £12bn for the European pay-TV company.

If successful, the deal will likely strengthen the position of James Murdoch – who is both chief executive of Fox and chairman of Sky – in his 86-year-old father’s media empire.

The submission comes after media regulator Ofcom revealed on Monday that Mr Murdoch’s Fox News Channel twice breached UK broadcasting standards before it was pulled from the airwaves this summer.

Sky News is a 24-hour, international channel that has been on air for 28 years and is said to reach more than 107 million homes in 138 countries.