Fleet Street unites against Murdoch

Media heads warn Vince Cable that Murdoch's bid for BSkyB could destroy media plurality.

Rupert Murdoch has long seen himself as an "anti-establishment" radical and this morning he will feel vindicated. His bid to take full ownership of BSkyB (he currently owns a 39 per cent stake) has achieved the rare feat of uniting the highly factionalised world of Fleet Street around a single cause: to stop Murdoch.

A remarkable cross-section of media executives have written to Vince Cable urging him to consider blocking News Corp's takeover bid on plurality grounds. Signatories to the letter include Murdoch MacLennan, chief executive of Telegraph Media Group, Mark Thompson, director general of the BBC, Ian Livingston, chief executive of BT, Sly Bailey, chief executive of Trinity Mirror, Andrew Miller, chief executive of Guardian Media Group and David Abraham, chief executive of Channel 4.

For the Telegraph, which has a long-standing non-aggression pact with News International, to intervene in this fashion, reveals the degree of concern over Murdoch's takeover plan.

When questioned on the subject at a recent New Statesman fringe event, Cable replied:

I am not willing to express a view on it. This is a legal process. The power that I have as a secretary of state is limited to a judgement on whether the media plurality is affected on this - and I will form a judgement if a bid is made, but as yet no bid has been made.

If Cable's aim is to preserve media plurality then there is only one possible conclusion: the deal must be blocked. As Mark Thompson recently argued in his impressive MacTaggart Lecture, Murdoch's takeover bid, if successful, would lead to a "concentration of cross-media ownership" that would be unacceptable in the United States or Australia.

As the owner of the Sun, the News of the World, the Times and the Sunday Times, Murdoch already controls 37.3 per cent of UK newspaper circulation and, based on revenue, Sky is now the country's largest broadcaster, with an annual income of £5.4bn. With the Times already behind a paywall and the News of World soon to follow, his game plan is coming into view.

Once the deal is complete, we can expect the News Corp head to bundle his newspapers with Sky subscriptions in an attempt to offset falling circulation. As media analyst Claire Enders has predicted, by the middle of this decade, Murdoch could control 50 per cent of the newspaper and television markets, a concentration of ownership that would make even Silvio Berlusconi blush.

That Murdoch has a history of editorial intervention is not strictly relevant: it would be undesirable for any individual or company, however benevolent, to achieve such a concentration of ownership. But it certainly raises the stakes.

David Cameron, who could count on the full-throated support of Murdoch's newspapers during the election and whose communications director, Andy Coulson, remains close to News International, now faces a major political dilemma. Does he defend plurality and competition, or will he stay loyal to his media patron?

We know that Murdoch visited Downing Street just a week after Cameron became prime minister. Was Cameron leant on to approve the BSkyB deal? We may be about to find out.

George Eaton is political editor of the New Statesman.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.