Sky News has broken the news that News Corp has withdrawn its bid for the remainder of BSkyB, but will remain a shareholder in the company.
Early reports suggest that the opposition day debate on the merger will go ahead as planned. Not clear yet whether motion will be amended/changed in light of recent developments.
Downing Street say:
"We welcome the news. As the prime minister has said, the business should focus on clearing up the mess and getting its own house in order."
Ed Miliband has put out the following statement:
"This is a victory for people up and down this country who have been appalled by the revelations of the phone hacking scandal and the failure of News International to take responsibility.
"People thought it was beyond belief that Mr Murdoch could continue with his takeover after these revelations."
"It is these people who won this victory. They told Mr Murdoch: ‘This far and no further'.
"Nobody should exercise power in this country without responsibility."
Simon Hughes says:
“My colleagues and I have been warning for 17 years of the dangers of the growing influence of the Murdochs in Britain.
“Three days ago the most popular Murdoch title disappeared - ruined by the excesses of some of its staff. Today the News International bid for BSkyB has been withdrawn.
“At last the sun is setting on Rupert Murdoch’s British empire.
“Journalism in the UK used to have the reputation as the best in the world. It is in the interests of all the public that this reputation is now restored.”
Full statement from News International:
News Corporation ("News Corp") announces that it no longer intends to make an offer for the entire issued and to be issued share capital of British Sky Broadcasting Group PLC ("BSkyB") not already owned by it.
Chase Carey, Deputy Chairman, President and Chief Operating Officer, News Corporation, commented: "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."
Check back for more updates as we get them
Comments
notinyourparty / July 13 2011 4:12pm
Victory? This decision was made because the pressure was growing for an examination of whether this disgusting organisation meets the "fit and proper" requirement, for media ownership in the UK. An assessment that should still be made, given the huge proportion of the UK media that remains in their grubby hands.
I am sure the majority of people would agree that murdoch's organisation should still be tested to see if it really is "fit and proper" to own any part of the UK media.