Sam Hart: Murdoch has had to follow strict rules

Published on Thursday 3 March 2011 17:11

THIS deal, in reality, will make very little difference to the market as far as people will see it, but because Rupert Murdoch is involved it will always be controversial.

Part of the reason for this is Murdoch's perceived political influence, and there are many who will see yesterday's decision by Jeremy Hunt as a political one, even though he has had to follow strict regulatory rules.

Mr Murdoch, of course, backed the Conservatives at the last election, but you have to wonder whether he just follows the swing of public opinion. In the late 1990s he backed Labour and continued to support them for many years.

So it is possible to say that his political influence in terms of helping parties to win elections is exaggerated, but that is a matter of debate.

There is also the issue of whether he controls too much of the market. This certainly concerns rival news groups. In reality, he is now consolidating his control of BSkyB, although News Corp currently owns only 39.1 per cent of it.

The decision to sell off Sky News will help to allay concerns over its editorial independence, but News Corp will still have a presence on its board.

• Sam Hart is a media analyst at Charles Stanley stockbrokers.