James Murdoch Re-Elected Sky Chairman, Surviving Shareholder Uprising

Posted October 13, 2017

A report released by Ofcom in June warned that the Murdoch family, which is behind the Sun, the Times and the Sunday Times newspapers, would have "increased influence" over British media should the Fox-Sky deal go through.

That included votes cast on behalf of 21st Century Fox, Sky's largest shareholder, which is capped at 37.19% - and means that Mr Murdoch's appointment was also backed by a majority of independent shareholders.

Mr Darroch said the group's investment in production was "delivering", with customer viewing to Sky pay channels up 10% year-on-year.

Nearly 22 percent of all shareholders opposed Mr Murdoch and 48.5 percent of independent shareholders.

Sky PLC (SKY.LN) on Thursday reported that all resolutions were passed at its annual general meeting, but motions to reappoint James Murdoch as chairman and to approve the directors' remuneration report had lower levels of support. "Fox is getting a sweetheart deal out of this and mainly I think it's because of the lack of independence on the board".

When asked by the culture, media and sport select committee about how the decision was reached White said that a thorough review had been carried out adding "We did not find a particular concern that would have caused us to believe that Sky News in particular and Sky as a broadcaster, post-transaction, would not be a fit and proper broadcaster", adding that Sky "currently has a very strong record of compliance on broadcasting".

Ofcom chief executive Sharon White has said she is "absolutely confident" that the broadcasting regulator was right in ruling that the planned purchase of Sky by Rupert Murdoch's 21 Century Fox would not undermine its broadcasting standards.

Fox's bid to buy the 61% stake in Sky which it does not already own is now the subject of a Competition and Markets Authority investigation.

Sky is also set to update the market with results for the three months to 30 September on Thursday.

Jeremy Darroch, Group Chief Executive, said that the good revenue growth and excellent profit growth was achieved against the backdrop of pressure on consumer spending and lower spend on United Kingdom television advertising.

He added: "Game of Thrones has become the most watched series ever on Sky". The pay package handed to Sky's chief executive, Jeremy Darroch, quadrupled to more than £16m in the year to the end of June, despite a hefty fall in annual profits at the broadcaster's United Kingdom and Ireland business.

Shares of Sky, which are valued at 1075p under 21st Century Fox's takeover bid, closed 13p higher at 926.5p.