Yesterday Rupert Murdoch set in motion a plan to spin off Sky News, effectively clearing the way for News Corporation to buy the remaining portion of BSkyB that it currently doesn’t own.
The Guardian just reported that Culture Secretary Jeremy Hunt has approved the plan:
Under the deal, the loss-making news subsidiary will be spun off into a new publicly listed company called Newco, and will be independently funded for 10 years. News Corporation is to license the Sky News brand to the operation for seven years, providing an incentive to renew a second funding deal.
Opponents of the deal – including The Guardian – are considering filing for a judicial review of the decision.
They better think quick. With News Corp. taking over BSkyB, the company now not only owns the majority of newspapers in Britain, it controls the biggest TV station as well. And you thought America’s media was bad.