News Corp withdraws BSkyB bid


13 Jul 2011

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Rupert Murdoch’s News Corp has withdrawn its bid to takeover the 61pc of BSkyB it doesn’t already own.

Sky News is currently reporting that the media conglomerate has given up on its attempts to gain total control of broadcaster BSkyB.

In a statement, deputy chairman, president and chief operating officer, Chase Carey said, "it has become clear that it is too difficult to progress in this climate".

The full statement from News Corp reads:

"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."

News Corp currently owns 39pc of BSkyB but Murdoch has had his eye on the remaining 61pc for years. The firm said it will remain a long-term, committed shareholder in the broadcaster.

BSkyB released a statement acknowledging News Corps’ new position.

The board said it still believes BSkyB has a compelling investment case and significant growth opportunities.

Jeremy Darroch, BSkyB’s chief executive, said:

"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."

Shares in BSkyB have fallen 3.6pc on the reports. Here’s a snapshot of the company’s stock value over the past few days:

pic

The announcement comes ahead of a parliamentary vote on a motion calling for the withdrawal of the bid. All three main parties had agreed to speak against the bid for BSkyB.

Opposition leader Ed Miliband, who tabled the motion yesterday, said the decision by News Corp represents a victory for people up and down the country.

As the news broke, British Prime Minister David Cameron was visiting the family of Milly Dowler, the murdered schoolgirl whose telephone was hacked into when she went missing in 2002.

Photo: Rupert Murdoch, chairman and CEO of News Corporation

Article courtesy of Businessandleadership.com

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