News Corp has withdrawn its bid to acquire the remaining 61 per cent of BSkyB that it didn't already own, following immense political pressure in the House of Commons today.
MPs were expected to vote this afternoon in favour of a motion calling on News Corp boss Rupert Murdoch to ditch the planned merger.
Murdoch has faced days of extremely damaging phone-hacking and police payment allegations against his UK-based newspaper publishing company News International, which has already seen the demise of his most profitable title - the News of the World.
News Corp deputy chairman, president and COO Chase Carey said in a statement that the company "believed that the proposed acquisition of BSkyB... would benefit both companies but it has become clear that it is too difficult to progress in this climate."
He added that Murdoch's media empire "remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."
However, the company could attempt another bid for BSkyB at a later date.
"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." ®