EU Approves News Corp.'s BSkyB Bid

Rupert Murdoch's News Corporation receives regulatory approval from the European Union to acquire U.K.-based pay-TV operator British Sky Broadcasting.
By Theresa McCabe ,

NEW YORK (

TheStreet

) --

News Corporation

(NWSA) - Get Report

has received regulatory approval from the European Union to acquire U.K.-based

British Sky Broadcasting

, or BSkyB.

"I am confident that this merger will not weaken competition in the United Kingdom. The effects on media plurality are a matter for the U.K. authorities," EU competition commissioner Joaquin Almunia said in a statement.

News Corp. holds a 39% stake in the pay-TV operator, and in early November it notified the EU of its

plans to make a bid

to buy the remaining 61% for 7.8 billion pounds, or approximately $12.4 billion.

BSkyB's rival news outlets and the Church of England

oppose the takeover

, arguing that News Corp. and CEO Rupert Murdoch would gain too much control of the British media. The company already owns four major U.K. newspapers, including the nation's largest publication,

News of the World

. By buying out Sky, News Corp. would acquire its 10 million customers, or close to 66% of the pay-TV subscribers in the U.K.

The

U.K. Office of Communications is still investigating the deal

. U.K. business secretary Vince Cable ordered that OFCOM complete a review by Dec. 31.

--Written by Theresa McCabe in Boston.

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