News Corp. Drops Sky Takeover Bid

LONDON: News Corporation announced today that it is dropping its efforts to take 100-percent control over BSkyB amid mounting opposition to the proposed merger.

"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 Chase Carey, deputy chairman, president and COO. "News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."

Opposition to the merger has intensified over the last week in the fallout from the News of the World phone hacking scandal. Members of Parliament were today due to vote on a motion declaring that “it is in the public interest for Rupert Murdoch and News Corporation to withdraw their bid for BSkyB."

Responding to the announcement from News Corp., Jeremy Darroch, chief executive of BSkyB, noted, "We are delivering on our clear, consistent strategy and are building a larger, more profitable business for the long term. We remain very confident in the broadly based growth opportunity for BSkyB as we continue to add new customers, sell more products, develop our leading position in content and innovation, and expand the contribution from our other businesses. I would like to commend all our employees for their unrelenting focus throughout the offer period and thank them for their continuing support."