News Corporation has succumbed to the pressure exerted upon the company to abandon the bid it placed for BSkyB acquisition.
According to The Wall Street Journal, Rupert Murdoch, the chief executive of media group News Corp. on Wednesday informed company’s decision to withdraw its bid from the auction process of BSkyB, a pay-TV firm, owing to pressure from the Parliament and general public.
The House of Commons decided to call the company to quit after a majority vote. The decision is a major blow to Murdoch Empire and family.
Murdoch stated that the deal had to be abandoned after Prime Minister David Cameron intervened. Cameron advised News Corp. to avoid business expansion and look in to correct the state of affair in his company at present.
"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”, stated Ed Miliband, the leader of the Labour party.
News Corp. is facing inquiry in to its unethical means of reporting adopted by its employees at its newspapers in Britain. The deal with BSkyB would have become the biggest deal for News Corp. if it had been closed successfully.