Rupert Murdoch is "not a fit person to exercise the stewardship of a major international company" asserts a damning report by MPs on the Culture, Media, and Sport Select Committee.

While there is no direct consequence of this conclusion from parliamentary lawmakers on the owner of News Corporation, which in turn owns a majority 39 percent stake in broadcaster BSkyB, the language is markedly similar to that which his company is being assessed by broadcasting regulators Ofcom on if it should hold a broadcasting license.

Off the back of phone hacking and policy bribery allegations targeted at News Corp-owned News International, Ofcom decided to launch an investigation into whether Murdoch's News Corp is "fit and proper" to hold a broadcasting license in the UK, which it and he does through ownership of BSkyB.

The "fit and proper" assessment comes from the Broadcasting Act 1990 and offers discretion to Ofcom in its judgement as to whether a media owner or operator meets this requirement.

It is the use of the phrase "not a fit person" in the select committee report Tuesday that may suggest the MPs who wrote it and voted to back the report's conclusions are themselves broadcasting a strong signal to Ofcom to revoke BSkyB's license.

The broadcasting regulators speedily acknowledged the MPs' report.

"We note the publication of the Culture, Media and Sport Committee report, which we are reading with interest," an Ofcom spokesperson said.

"Ofcom has a duty under the Broadcasting Acts of 1990 and 1996 to be satisfied that any person holding a broadcasting licence is, and remains, fit and proper to do so. Ofcom is continuing to assess the evidence that may assist it in discharging these duties.

"As part of this we are considering the Committee report."

Rupert Murdoch
News Corp, owned by Rupert Murdoch, is the parent company of BSkyB (Reuters)

James Murdoch, Rupert's son, remains a non-executive director of BSkyB though he stepped down as chairman in early April.

At the time Ofcom said that this resignation would not influence their final decision. They have since said they are looking at evidence relating to phone hacking in Murdoch's empire.

When Ofcom conclude their investigations, the IBTimes UK understands that there is not concrete path the regulators must take.

It is therefore unclear that, if they do regard BSkyB as unfit to hold a broadcasting license because of Murdoch ownership, the license would be revoked immediately, or if News Corp would be given the opportunity to sell its stake first.

BSkyB has been one of the major contributors to News Corp.'s earnings, adding 18 percent, or $498m, to the company's $2.7bn bottom line in the last financial year.