In Retreat, Murdoch Drops TV Takeover
By JOHN F. BURNS AND ALAN COWELL
NYT
LONDON — In a stunning setback after days of building scandal surrounding its British newspaper operations, Rupert Murdoch’s News Corporation announced on Wednesday that it was withdrawing a $12 billion bid to take over the shares it does not already own in Britain’s main satellite television broadcaster.
The withdrawal from the bid for complete control of British Sky Broadcasting, also known as BSkyB, represented the most severe damage inflicted so far on Mr. Murdoch’s corporate ambitions by the scandal. Only a week ago, Mr. Murdoch hoped to contain the damage by shutting down his 168-year-old tabloid, The News of the World, which had admitted to ordering the hacking of the voice mail of Milly Dowler, a 13-year-old girl abducted and murdered in 2002.
Since then, virtually every day has brought dizzying new disclosure and developments, culminating in News Corporation’s announcement on Wednesday.
Less than three hours before the House of Commons was scheduled to begin debate on a measure that demanded an end to the BskyB bid, Chase Carey, the company’s deputy chairman, president and chief operating officer, said in a statement, “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.”
(More here.)
NYT
LONDON — In a stunning setback after days of building scandal surrounding its British newspaper operations, Rupert Murdoch’s News Corporation announced on Wednesday that it was withdrawing a $12 billion bid to take over the shares it does not already own in Britain’s main satellite television broadcaster.
The withdrawal from the bid for complete control of British Sky Broadcasting, also known as BSkyB, represented the most severe damage inflicted so far on Mr. Murdoch’s corporate ambitions by the scandal. Only a week ago, Mr. Murdoch hoped to contain the damage by shutting down his 168-year-old tabloid, The News of the World, which had admitted to ordering the hacking of the voice mail of Milly Dowler, a 13-year-old girl abducted and murdered in 2002.
Since then, virtually every day has brought dizzying new disclosure and developments, culminating in News Corporation’s announcement on Wednesday.
Less than three hours before the House of Commons was scheduled to begin debate on a measure that demanded an end to the BskyB bid, Chase Carey, the company’s deputy chairman, president and chief operating officer, said in a statement, “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.”
(More here.)
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