Rupert Murdoch's News Corp. has withdrawn its $12 billion bid for BSkyB. The withdrawal represents a devastating blow to Murdoch, who had desperately sought to take full control of the satellite broadcaster. It comes after the British government, which had previously given every indication that it wanted the deal to progress, dramatically withdrew its support for the bid on Tuesday in the wake of the ever-deepening scandal surrounding News Corp and its UK subsidiary, News International.
News Corp. issued this statement:
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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