Exclusive: News Corp Withdraws Bid For BSkyB

[Turborama]

Source: Sky News

News Corporation has withdrawn its bid for BSkyB, Sky News City editor Mark Kleinman has exclusively revealed.

The media group feels the situation has become "too politicised" for it to continue with its takeover offer, a senior source told Kleinman.

"I'm told News Corp intends to remain a long-term shareholder in BSkyB," Sky's City editor added.

BSkyB's price has fallen by well over 3% after the news was broken.

Read more: http://news.sky.com/skynews/Home/Business/News-Corp-Withdraws-Its-Bid-For-BSkyB-Following-News-Of-The-World-Hacking-Scandal/Article/201107216029718?lpos=Business_Top_Stories_Header_0&lid=ARTICLE_16029718_News_Corp_Withdraws_Its_Bid_For_BSkyB_Followin

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http://marketdata.sky.com/skynews/instrument_view.html?ID_NOTATION=9454513

[maddezmom]

1. direct link here

http://news.sky.com/skynews/Home/Business/News-Corp-Withdraws-Its-Bid-For-BSkyB-Following-News-Of-The-World-Hacking-Scandal/Article/201107216029718?lpos=Business_Top_Stories_Header_0&lid=ARTICLE_16029718_News_Corp_Withdraws_Its_Bid_For_BSkyB_Following_News_Of_The_World_Hacking_Scandal

[Turborama]

6. Thanks a lot!

Edited accordingly.

:hi:

[Lucky Luciano]

2. News Corp Withdraws Bid For BSKYB, Sky News Says

Source: Bloomberg Terminal Headline

Headline only

No link yet.

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nice to see Murdoch taking a swift kick in the nuts.

[Bosonic]

3. Exclusive: News Corp Withdraws Bid For BSkyB

News Corporation has withdrawn its bid for BSkyB, Sky News City editor Mark Kleinman has exclusively revealed.

More follows ...

http://news.sky.com/skynews/Home/Business/News-Corp-Withdraws-Its-Bid-For-BSkyB-Following-News-Of-The-World-Hacking-Scandal/Article/201107216029718?lpos=Business_Carousel_Region_0&lid=ARTICLE_16029718_News_Corp_Withdraws_Its_Bid_For_BSkyB_Following_News_Of_The_World_Hacking_Scandal

[Lucky Luciano]

4. News Corp now confirming. Yay! nt

[dipsydoodle]

5. BBC link

Rupert Murdoch's News Corporation has announced that it is dropping its planned bid to take full ownership of BSkyB.

The announcement came as the House of Commons was preparing to vote for a motion calling on Mr Murdoch to do so.

All three major party leaders had said they supported the motion, which would not be legally binding on News Corp.

The decision follows days of allegations about phone hacking by News Corp subsidiary News International.

http://www.bbc.co.uk/news/business-14142307

There were financial penalties of withdrawing the bid but I can't find a link. Think it was a few hundred million. They may not have applied as such if the government had blocked the bid : News Corp could then have sued the government for such loss.

[Lucky Luciano]

9. Penalty is £38.5MM if withdrawn not due to regulatory issues.

Would have been £20MM if withdrawn due to regulatory issues. I don't see how they could have sued the UK government for not granting approval. The acquirer is taking risk and needs to judge the risk that the deal is not approved.

[dipsydoodle]

21. Yes

£38.5 million : http://www.dailymail.co.uk/news/article-2014318/News-Corp-withdraw-bid-BSkyB.html

I had been mentioned earlier in the week that if blocked by the government then taxpayers would bear the burden of the alternative penalty.

[onehandle]

7. Don't dance with the Devil. nt

[Rosa Luxemburg]

11. ITA nt

[muriel_volestrangler]

15. The ITA (Independent Television Authority) regulated British (non-BBC) TV until 1972

http://en.wikipedia.org/wiki/Independent_Television_Authority

It's a predecessor of Ofcom. I just thought the pun was worth noting. :)

[beac]

20. I'd like to see "ITA" stand for

Imminent Total Annihilation for Murdoch and his evil empire.

[Rosa Luxemburg]

23. ITV

we used to get just 2 stations BBC and ITV - that was before the days of BBC2 and more recent additions

[muriel_volestrangler]

24. Ooh, you're going back a fair way then ...

It's not long until BBC2 50th anniversary.

[beac]

8. Now, all that remains is for Ofcom to decide News Corp is not

"fit and proper" to retain their existing 39% and the dragon will be well and truly slain. :bounce:


ETA: I have to laugh at them complaining about the merger being "too politicised" when News Corps is all about influencing and controlling politics. Guess this is their first taste of being the target rather than the puppet-master.

[dipsydoodle]

10. I don't think that's achievable

In the absense of overall control the government cannot dictate who owns what shares.

What is at stake for them is OFCOM deciding they are not fit to OWN the media.

[muriel_volestrangler]

16. Apparently it can still consider it

1520: Media regulator Ofcom says that it is "still reviewing under 'fit and proper' criteria News Corp's ownership of the 39% of BSkyB it currently owns" - despite the company withdrawing its bid to fully take over the broadcaster.

http://www.bbc.co.uk/news/uk-politics-14134599

[dipsydoodle]

18. Yes

They've since discussed this issue both on Sky and the Beeb.

It might be sufficient for the Murdoch's to relinquish power and we face up to "the devil you know is sometimes better than the devil you don't know"

They also discussed last night that it is unlikely that events of late don't extend to Associated Newspapers and Trinity. I think for a while we may be saying goodbye to investigative journalism.

[muriel_volestrangler]

22. On the contrary, it was The Guardian's investigative journalism that uncovered all this

I think we may say goodbye to intrusive journalism of dubious legality. Or at least make them cover their tracks a lot better.

[Kingofalldems]

12. Is he circling the wagons?

[gpopple]

13. If only

we could rely on our DOJ to take some action.

[somone]

14. Good. Who made Murdoch emperor?

[edbermac]

17. I don't like to kick people when they're down, however in Murdoch's case...

He and his company deserve a major league ass-kicking

[Uncle Joe]

19. Kicked and recommended.

Thanks for the thread, Turborama.