News Corp. dropped its bid to take full control of British Sky
News Corp. dropped its bid to take full control of British Sky Broadcasting Group PLC, a sharp retreat for the media giant as it acknowledged that getting the deal through would be difficult in the current climate, amid a scandal over reporting tactics at one of its U.K. tabloid newspapers.
The move demonstrates how the political winds have changed for News Corp. and its chairman and chief executive, Rupert Murdoch, in Britain. Just over a week ago, News Corp. was on the brink of gaining government approval to acquire the 60.9% of BSkyB that it doesn’t already own.
The chance for approval was jeopardized as the company’s political support in the U.K.’s political establishment crumbled with the flare-up of a long-running scandal over reporting methods at its News of the World tabloid in the U.K. Once steadfast allies who long courted Mr. Murdoch’s support – such as U.K. prime minister David Cameron – instead distanced themselves from the company amid the latest allegations.