It was recently thought that Rupert Murdoch's purchase of British Sky Broadcasting was almost a formality. But there are now dark clouds on the horizon for the deal.
Already in possession of 39% of the company Rupert Murdoch wants to buy the rest of the stock for $12 billion. Having already gained possession of a large amount of the press there are worries that this is definitely one step too far.
Just about a week ago the Labour party were in an angry tizz alleging that the Tories were doing everything in their power to ensure a Murdoch success in the deal that would hand him full control of BSkyB. They even pressed for a commons investigation after the culture secretary Jeremy Hunt gave Rupert Murdoch time to try and fend off a competition enquiry. Jeremy Hunt was brought in to the equation after Vince Cable was caught by undercover Telegraph reporters saying he had 'declared war' on the Murdoch empire.
Despite the media regulator Ofcom recommending that the deal be put before the Competition Commission the culture secretary instead opted to listen to 'undertakings in lieu'. The defence being that it would stymie future legal challenges Murdoch might make once the deal was referred to the Competition Commission.
Rupert Murdoch and Jeremy Hunt (Courtesy of Barker Illustrations)
But now the Murdoch media empire finds itself surrounded by other controversies. The Sky Sports duo of sexist commentators for a start. Then there is the growing scandal enveloping the News of the World and the phone hacking saga.
This is giving Murdoch's enemies ample ammunition to throw at him and maybe ensuring a most thorough investigation into the deal.
What was a foregone conclusion now looks to be on very unsure ground.
Mr Murdoch missed the Davos meeting in order to concentrate on this. Andrew Neil an ex-Murdoch editor said 'He himself is very depressed about the prospects now. It's not Mission: Impossible, but he thinks it's very difficult. The government is trying to distance itself from the Murdoch organization. That's why he's come in to take direct control himself, a last roll of the dice to rescue the situation.'
The post Has Murdoch missed the boat with BSkyB? first appeared on The Economic Voice.