In the light of the recent hacking scandal that has rocked News Corporation to the core, Rupert Murdoch’s media empire has decided to withdraw its bid for BSkyB, a monopolising move that seemed almost certain to be green-lit just a few short weeks ago.
“News Corporation announces that it no longer intends to make an offer for the entire issued and to be issued share capital of British Sky Broadcasting Group PLC not already owned by it,” reads the News Corp statement.
“We believed that the proposed acquisition of BSkyB by News Corporation would benefit both companies but it has become clear that it is too difficult to progress in this climate,” added News Corporation’s Chase Carey, Deputy Chairman, President and Chief Operating Officer.
“News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it.”
News Corp had appeared on the brink of finalising the bid (which they were expected to win with) earlier this month, with Culture Secretary Jeremy Hunt stating that he would make no moves to block it. In a 180-degree reversal of fortunes, all major UK political parties are now banding against News Corp, as the Tory government prepare a mojor investigation into the details of the hacking scandal.