News Corp withdraws bid for BSkyB
Rupert Murdoch’s News Corporation has announced that it is dropping its planned bid to take full ownership of BSkyB.
The announcement came as the House of Commons was preparing to vote for a motion calling on Mr Murdoch to do so.
All three major party leaders had said they supported the motion, which would not be legally binding on News Corp.
The decision follows days of allegations about phone hacking by News Corp subsidiary News International.
“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,” said News Corp chairman Chase Carey in a statement.
“News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and out contribution to it.”