Murdoch Withdraws Bid for BSkyB Amid Public Outcry and Government Pressure

Strategic Insights -

British Prime Minister David Cameron has put pressure on media mogul Rupert Murdoch to withdraw his conglomerate's bid to acquire UK's biggest direct-to-home broadcaster BSkyB, following a motion moved by the Opposition Labour party in the British parliament. The Labour party's motion, supported by Cameron, has led to widespread public anger at hacking of mobile phones, including the voicemail of a murdered girl and families of dead soldiers, in News of the World's newsgathering operations.

Key Takeaways:

  • Rupert Murdoch's News Corporation has withdrawn its bid to acquire BSkyB, citing it as "too difficult to progress in this climate" after Labour party's motion in the British parliament.
  • Prime Minister David Cameron warned those who sanctioned wrongdoing should have no further role in running a media company in the UK.
  • The government will appoint a judge-led inquiry into phone hacking, led by Lord Justice Brian Leveson, with the authority to summon media proprietors, editors, and politicians to give evidence.
  • The inquiry will have two parts: an investigation of wrongdoing in the press and the police, and a review of regulation in the press, culture, practices, and ethics.
  • News Corp is considering selling off its remaining British newspapers, including the Sun, the Times of London, and the Sunday Times.
  • The issue of cross ownership will also be examined in the inquiry.
  • The hacking scandal at News of the World has led to a widespread conclusion in Britain that self-regulation of print media has failed.
  • Murdoch's conglomerate, News Corporation, has a 39% stake in BSkyB but wants to acquire it wholly.

Statistics:

  • News Corporation has a 39% stake in BSkyB.
  • BSkyB aims to reach 10 million viewers this year.
  • The phone-hacking scandal has led to the suspension of Emma Tucker, the deputy editor of the News of the World.
  • A total of 800 people are believed to have had their phones hacked by News of the World journalists.

Sources:

  • "Murdoch withdraws BSkyB bid after Labour MPs move against bid", The Guardian, Wednesday, July 13 (no date provided)
  • "News Corp mulls unloading all its UK papers", The Wall Street Journal, Wednesday, July 13 (no date provided)
  • "Too difficult to proceed in this climate: News Corp", The Economic Times, Wednesday, July 13 (no date provided)