BSkyB has said it welcomes an announcement by Ofcom that Sky 'remains a fit and proper holder of its broadcasting licences'.

The investigation followed the infamous hacking scandal which surrounded Rupert Murdoch's media empire.

The company issued a statement saying: "Ofcom is right to conclude that Sky is a fit and proper broadcaster. As a company, we are committed to high standards of governance and we take our regulatory obligations extremely seriously. As Ofcom acknowledges, our track record of compliance in broadcasting is good.

"We are proud of our contribution as a broadcaster, the investments we make to increase choice for UK audiences and the wider benefits we create for the economy. After a lengthy review process, we are pleased that Ofcom has now reached its conclusion and we look forward to continuing to develop our business for the benefit of customers and shareholders alike."

However, Ofcom criticised the actions of James Murchdoch, who resigned from Sky in April of this year, saying: "We consider James Murdoch's conduct, including his failure to initiate action on his own account on a number of occasions, to be both difficult to comprehend and ill-judged.

"We consider that the events ... raise questions regarding James Murdoch's competence in the handling of these matters, and his attitude towards the possibility of wrongdoing in the companies for which he was responsible."

Commenting on the news analysts at Nomura are of the following opinion: "Ofcom does not demand James Murdoch be removed from the board, but leaves this question up to the other directors at BSkyB. There are still obstacles to News Corporation reviving its bid for BSkyB, not least ongoing police investigations, the statements made at the time by David Cameron and Ed Miliband and the prevailing political climate; however, this judgement removes one crucial barrier, in our view."

NR

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