Rupert Murdoch’s News Corp has withdrawn its $12 billion bid for BSkyB.
Sky News, which is partially owned by News Corp, broke the story reporting that News Corp felt the situation has become too “politicized.”
In a statement News Corp COO Chase Carey said “it has become clear that it is too difficult to progress in this climate. News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it.”
It’s a stunning about-face for Rupert Murdoch who has clung to the deal in the face of calls from Parliament to withdraw as the phone-hacking scandal continues to implode.
However, this morning during question period Prime Minister David Cameron came out against the deal, leaving Murdoch little wiggle room.
Some things to consider:
- Does this mean Murdoch has chosen papers over TV? There has been speculation in the last few days that Murdoch would drop News International, his British newspaper arm, in favour of keeping the BSkyB deal steady. He just did the opposite.
- What does this mean for James Murdoch? Long considered the heir to the Murdoch legacy, BSkyB was James’ deal and a way to make his mark. No longer.
- Will this ease up the probe the David Cameron announced earlier this morning?
- Is this just another move on Murdoch’s part to delay the takeover until the hacking scandal dies down? It’s possible he could make another bid within two years.
And here is the full statement from News Corp:
News Corporation (“News Corp”) 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 (“BSkyB”) not already owned by it.
Chase Carey, Deputy Chairman, President and Chief Operating Officer, News Corporation, commented: “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. News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it.”
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