Phone hacking scandal spurs News Corp. to drop bid for BSkyB
"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," said News Corp chairman Chase Carey in a statement.
News Corp. already controls the company with about 40 percent ownership. The British government had been scheduled to vote on the deal last Friday, but News Corp. delayed its bid after the phone-hacking scandal intensified last week.
Earlier: Why shutting down News of the World was a good business decision
What's next: "Anybody who pretends that they know where News Corp story is headed is bluffing," tweets The New York Times' David Carr. "Way too large, dynamic and fast-moving to tell."