LONDON, England - Rupert Murdoch's News Corp. has withdrawn its bid for British satellite broadcaster BSkyB in the wake of the growing scandal over newspaper phone-hacking, the company announced on Wednesday.
The announcement came shortly before Britain's House of Commons was to debate a government-backed motion calling on Murdoch to halt his attempt to acquire the 61-percent of BSkyB his company does not already own.
"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 Chase Carey, deputy chairman, president and chief operating officer of News Corp. in a statement.
"News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."