Public opposition to the Sky takeover could be forcing the media mogul to drastically scale back his empire.
Walt Disney is set to buy 21st Century Fox’s entertainment assets for a staggering $52.4bn (£39bn). But it is possible Murdoch may have felt pressured to sell, as public scrutiny of his family intensifies.
Campaign group Avaaz has long been opposing the tycoon’s bid to takeover Sky UK, arguing this would give his family too much control of the British media. The organisation has been watching the Murdochs closely as a result and says its “sources in the City and beyond” see the sale to Disney as “an admission of defeat”.
Avaaz point out that it doesn’t make sense for this unprecedented sale to come in the middle of Fox’s largest attempted takeover to date. It makes it look like selling to Disney wasn’t part of a ‘grand plan’ after all, but is instead a response to intense scrutiny on harassment and hacking from campaigners, regulators and lawyers.
If the sale came from a place of strength — as the Murdochs are trying to spin it — it is more likely they would have waited until after the Sky deal had gone through, said Alex Wilks, Campaign Director at Avaaz.
He said:
“Tremendous public opposition has forced Rupert Murdoch to drastically shrink his empire after decades of expansion.
“The Murdochs are spinning this as a masterplan to secure their legacy, but the reality is they are running scared that the Sky scrutiny will drag more dark family secrets into the light.”
The Sky deal has been highly problematic for the Murdochs since the start, facing both regulatory hurdles and political opposition.
Allegations of sexual harassment at Fox and the dissemination of fake news were both used to justify referring the takeover to the UK Competition and Markets Authority (CMA), which is due to publish provisional findings in January.
The new deal with Disney represents a u-turn for Murdoch, who has been expanding his business empire consistentl for half a century.
Murdoch was perceived to have been acquiring assets to hand down to his two sons, who are both already involved in running the company.
But the 86-year-old has now given away Fox’s 39% stake in Sky US, and the 20th Century Fox film studio.
Fox’s remaining assets, including Fox News and Sports, will form a new company.
Charlotte England is a freelance journalist and writer at Left Foot Forward. Follow her on Twitter.
To reach hundreds of thousands of new readers we need to grow our donor base substantially.
That's why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward's work.
We still need another 117 people to donate to hit the target. You can help. Donate today.