BSkyB Bid Dropped by News Corp.
The proposed bid to takeover the broadcaster BSkyB has been dropped by Rupert Murdoch’s News Corp. after pressure mounts on the company following the fallout from the phone hacking scandal.
The fallout from the phone hacking scandal that has enveloped News Corp. in recent weeks has continued with the takeover of BSkyB being shelved. Although News Corp already owns 39% of the company it saw the takeover as vital to it’s company strategy.
David Cameron has already stated that a public inquiry will be held into media regulation, and the opposition leader had tabled a bid to discuss the proposed takeover in Parliament today when the announcement was made.
The companies share price dipped again on the news that the bid had been dropped, it has already tumbled by a substantial amount following the allegations made against it’s publishing empire.
Further accusations about other media organisations within the News Corp. empire have trickled out this week following the closure of the paper at the centre of the phone hacking allegations, the news of the world.
Rupert Murdoch has been in London this week to try and steady the ship as well as show support for Rebekah Brooks, the CEO of news international and one of the people at the centre of the row.
Meanwhile the problems for News Corp. have crossed the Atlantic with the Senate commerce committee chairman calling for an investigation as to whether any of News Corp’s employees broke US law.
What happens next in this drama is anyone’s guess. News Corp. is a public owned company that seems to have been run as a family business by the Murdoch’s and many are guessing that it will not stay that way for much longer.
Whatever happens it seems that those whose job it is to publish the news now have a story worthy of a publishing/book/film deal itself.
Photo: World Economic Forum
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