The attempted acquisition “is too difficult to progress in this climate,” Chase Carey, deputy chairman of News Corp., said in a statement. Murdoch had been seeking the British Parliament’s approval for the $12 billion bid, which had seemed likely just two weeks ago. But since the allegations of phone hacking by News of The World reporters and other journalists employed by News Corp. surfaced earlier this month, government and public sentiment has turned against News Corp. and the proposed deal.
The decision came hours before lawmakers in Britain were set to debate a measure calling on News Corp. to drop the bid. That measure was expected to pass in the House of Commons with strong support from all parties. News Corp. still retains a 39% ownership stake in BSkyB.