News Corp has withdrawn its bid for BSkyB, it has been reported.
The News International deal to buy the remaining portion of BSkyB had come under huge increasing pressure following the relevations about phone hacking at the News of the World.
On Monday, the Culture Secretary Jeremy Hunt had referred News Corp's BSkyB deal to the Competition Commission.
"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.
"News Corporation
remains a committed long-term shareholder in BSkyB. We are proud of the
success it has achieved and out contribution to it."
According to Mark Kleinman, Sky's business editor, if News Corporation withdraws its BSkyB bid, it won't be able to submit a new one for at least six months.However News Corp say they are committed to remain a long-term shareholder for BSkyB, of whom they own 39%.
The news that Rupert Murdoch is dropping his bid for BSkyB came after prime minister David Cameron called on News International to back out of the deal, demanding that the News of the World owner have a “root and branch change”.
Cameron said that News International’s bid for BSkyB was no longer appropriate and that it should focus instead on sorting out "the mess it has created".
Today, the House of Commons was preparing to vote for a motion calling on Murdoch to drop the BSkyB bid.All three major party leaders had said they supported the motion.
