CMA details scope of Fox-Sky investigation in issues statement

CMA details scope of Fox-Sky investigation in issues statement

The motion to reappoint Mr Murdoch, a former chief executive of Sky, was passed with 78% of votes.

The broadcaster said in a statement: "The board notes the significant vote against resolution 3, the directors' remuneration report, and resolution 12, the re-election of James Murdoch, and will continue to engage with shareholders to understand their views as part of its ongoing programme of engagement".

It has also pledged to increase investment in Sky originals by 25% this year, meaning Sky will show four "major dramas" each quarter - including its first German production, Babylon Berlin, which is due to debut this week.

In response White said that while the regulator has from some "extremely disturbing" behaviour at Fox News, for which 21st Century Fox is the parent company, it did not believe that Sky was deserving of losing its broadcasting licence following the proposed takeover.

The group shrugged off pressure on consumer and advertising spending to post a 5% rise in revenues to £3.3bn (€3.68bn) for the first quarter, while underlying earnings jumped 11% higher to £582m (€649m).

Sky confirmed in its annual report last month that chief executive Jeremy Darroch's total annual pay packet more than trebled to £16.3m (€18.1m) a year ago despite annual profits being hit by the cost of broadcasting live Premier League football.

This week the Competition and Markets Authority (CMA) outlined how it will examine the deal and the impact on media plurality and broadcasting standards in the United Kingdom and invited submissions for the six-month investigation.

During the meeting, one investor questioned both the terms of the deal and Mr Murdoch's position as chairman of Sky, given his role as 21st Century Fox's chief executive.

On 20 September, Karen Bradley, the Secretary of State for Digital, Culture, Media and Sport referred Fox's proposed takeover of Sky to the CMA on public interest grounds.

Bradley will appear at a select committee hearing on Wednesday, while Sky is to face shareholders for its annual general meeting on Thursday. On Tuesday the regulator set out the scope of the investigation, with a final report due early next year.

The CMA is required to report back with its recommendations within six months of opening the investigation.

It has already added 800,000 new subscription products this year bringing the total to over 60 million.

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