Amid Scandal, Rupert Murdoch Gives Up Takeover Bid Of BSkyB Pay TV Operation

by Mark Joyella | 9:48 am, July 13th, 2011

» 22 comments

General Murdoch appears to have ordered his British troops to retreat. Sky News reports this morning Rupert Murdoch has abandoned his long-planned $12 billion bid to takeover British Sky Broadcasting, known in the U.K. as BSkyB. The decision comes as the British parliament was set to pass a resolution calling on Murdoch to withdraw his bid for a full takeover of the company–Murdoch’s News Corp. already owns 39 percent of BSkyB.

The New York Times described the decision as a “stunning reversal” for a mogul unfamiliar with defeat:

The development was the latest upheaval flowing from the phone hacking scandal within Mr. Murdoch’s British newspaper empire that has convulsed his company and ended what, for years, had been a close, cozy and influential relationship with the British establishment.

As CNBC has reported, the collapse of the BSkyB bid marks a “dramatic fall from grace” for Murdoch, who has flown to the U.K. to do damage control in the wake of the closure of the News of the World, brought down by the expanding phone hacking scandal:

The Independent newspaper, which has been critical of Murdoch since the scandal broke, quoted ministers as saying privately that the takeover would be “politically dead” after the vote in parliament.

One government insider told the paper that the only way News Corp could complete the takeover of BSkyB would be to sell off his three remaining British newspapers — The Sun, The Times and The Sunday Times.

Here’s the full statement from News Corp.:

News Corporation Withdraws Proposed Offer for British Sky Broadcasting Group PLC

13 July 2011 – 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.”

* For the purposes of Rule 2.8 and other relevant provisions of The City Code on Takeovers and Mergers (“City Code”), News Corp reserves the right to announce an offer or possible offer or make or participate in an offer or possible offer for BSkyB and/or take any other action which would otherwise be restricted under Rule 2.8 of the City Code within the next six months in the event that:

(i) there is an announcement other than by News Corp or any subsidiary of News Corp of an offer or possible offer for or a merger or possible merger with BSkyB; or

(ii) BSkyB announces a whitewash proposal for Rule 9 purposes or a reverse takeover not involving News Corp or any subsidiary of News Corp.

In the event that News Corp is permitted pursuant to the City Code to announce an offer or possible offer for BSkyB, News Corp reserves the right to do so at any price and at a price less than 700 pence per BSkyB Share in the event that either: (i) it is recommended by the Board of BSkyB; or (ii) there is an announcement by a third party of an offer or a possible offer for BSkyB at a price lower than 700 pence per BSkyB Share; or (iii) BSkyB declares, makes or pays a dividend which is in excess of its stated dividend policy at the time of this announcement; or (iv) it is so permitted by the City Code.

Any such offer or possible offer by News Corp or any subsidiary of News Corp will be subject to obtaining any required regulatory approval.

A copy of this announcement will be available on News Corp’s website at www.newscorp.com.

Deutsche Bank and J.P. Morgan Cazenove are acting as financial advisers to News Corp.

bskyb, CNBC, David Cameron, News Corp., rupert murdoch, The New York Times

THE REAL ROYAL KING

This retreat is as dramatic as the Republican Retreat on Deficit Reduction.

It appears that the trashy Sun, the once venerable Times and the Sunday Times, all tainted with the Murdoch stench and scandal as well, are too toxic to sell now. Pennies on the Pound, at best. And, with Murdoch spending such much free capital on propping up NewsCorp, that is untenable, even unbearable.

Giving up the SkyNews bid, however, is huge, “Huge!,” I say. This was suppose to be the icing on the cake. The long sought credibility. What a disappointment for him.
Jackyboy

Damn, not a good month for Murdoch.
THE REAL ROYAL KING

Jackyboy said:
Damn, not a good month for Murdoch.

And, it’s not half over.
jddoubleu

THE REAL ROYAL KING said:
This retreat is as dramatic as the Republican Retreat on Deficit Reduction.

It appears that the trashy Sun, the once venerable Times and the Sunday Times, all tainted with the Murdoch stench and scandal as well, are too toxic to sell now. Pennies on the Pound, at best. And, with Murdoch spending such much free capital on propping up NewsCorp, that is untenable, even unbearable.

Giving up the SkyNews bid, however, is huge, “Huge!,” I say. This was suppose to be the icing on the cake. The long sought credibility. What a disappointment for him.

you’re touching it right now aren’t you, you sick piece of sh*t…
ImJustThatDamnGood

So this is what it takes to shut Fox News up? LOL
Giant Forehead

jddoubleu said:
you’re touching it right now aren’t you, you sick piece of sh*t…

I think someone took a wrong internet turn. Dude this is Mediaite, I reckon you’re looking for Braindead-Perverts.com
Jackyboy

ImJustThatDamnGood said:
So this is what it takes to shut Fox News up? LOL

This is not the end for Fox News (sorry to disappoint you). It means that Murdoch wont be able to own BSkyB anytime soon. The only change in News Corp at this point is the end of the News of the World.
THE REAL ROYAL KING

Jackyboy said:
This is not the end for Fox News (sorry to disappoint you). It means that Murdoch wont be able to own BSkyB anytime soon. The only change in News Corp at this point is the end of the News of the World.

You’re absolutely correct.

Murdoch’s efforts at this time are not to save FOX “News”. It is in no particular jeopardy. His efforts are to stave off the shareholders’ revolt. If that revolt were successful, we’d have a very different FOX “News”, but we’d still have it. That’s not a bad thing. However, Murdoch seems to be doing the right things to keep the revolt under control.
Bill Huggins

TICK
TICK
TICK
TICK

Goes the ticking time bomb for Newscorp’s American interests

HAHAHAHAHAHAAHHAHhh

ITS GONNA EXPLODE

LOOK OUT NY POST
Azarkhan

Believing that the Operation Fast and Furious scandal reaches into the highest levels of the Justice Department, congressional Republicans asked the attorney general’s office to turn over a sweeping trove of emails, documents and other material to determine Washington’s role in the “reckless” operation that allowed U.S. semiautomatic weapons to flow to Mexican drug cartels.

http://www.latimes.com/news/nationworld/nation/la-na-guns-documents-20110713,0,1830564.story?track=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+latimes%2Fnews%2Fnationworld%2Fnation+%28L.A.+Times+-+National+News%29
jddoubleu

Giant Forehead said:
I think someone took a wrong internet turn. Dude this is Mediaite, I reckon you’re looking for Braindead-Perverts.com

reckon?

what’s up billy joe bob? shouldn’t you be down to the walmart? lmao
Giant Forehead

jddoubleu said:
reckon?

what’s up billy joe bob? shouldn’t you be down to the walmart? lmao

I’m sorry man but I don’t speak internet hillbilly. Is this some sort of jokeless zing?
jddoubleu

Giant Forehead said:
I’m sorry man but I don’t speak internet hillbilly. Is this some sort of jokeless zing?

you used the word reckon and you got the balls to call someone else a hillbilly? fail some more, you’re fun to watch…
skyfet

Ladies and Gentlemen! We got him!
jack88

ImJustThatDamnGood said:
So this is what it takes to shut Fox News up? LOL

Haha no but what it has done is stop Murdoch turning Sky News into a British Fox News.

Which is a very good thing- the printing press in the Uk may be all over the place but the TV news media is still fairly impartial and just seen as ‘the news’ rather the conversative activism you see on fox news for example.
glenn113

http://doninmass.files.wordpress.com/2011/07/jones.jpg
JFD8

The Tories flew high when they won
But now they see Murdoch and run
As Cameron learned
That Icarus burned
By getting too close to The Sun.

News Short n’ Sweet by JFD8
http://twitter.com/JFD8
TillieGlockenspiel

Interesting how Soros-funded Media Matters announces its “War On Fox News,” Fox News responds by attacking the tax exempt status of Media Matters, and all he** breaks loose in the UK (where Soros actually lives and where he destroyed the British pound so many years ago). Just an odd coincidence……….
homie

“The only change in News Corp at this point is the end of the News of the World.”

Sure about that, are you? Since multiple investigations are only getting underway and the scandal continues to grow daily, your observation errs a little to the conclusive, doncha think?
THE REAL ROYAL KING

TillieGlockenspiel said:
Interesting how Soros-funded Media Matters announces its “War On Fox News,” Fox News responds by attacking the tax exempt status of Media Matters, and all he** breaks loose in the UK (where Soros actually lives and where he destroyed the British pound so many years ago). Just an odd coincidence……….

Only to delusional paranoiacs.
Skippy

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Soy del pueblo jamás lo podré olvidar
Debéis creerme, mis lujos son solamente un disfraz
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Las reglas del ceremonial

Tenía que aceptar debí cambiar
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Thelonious Funk

I think I just heard the sad Price is Right trombone flare.