News Corp withdraws BSkyB bid

News Corporation has announced that it no longer intends to make an offer for the entire issued and to be issued share capital of BSkyB not already owned by the corporation.
Chase Carey, Deputy Chairman, President and Chief Operating Officer, News Corporation, said in a statement: “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. News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it.”
A statement on the BSkyB website reads, “The Board believes BSkyB has a compelling investment case and significant growth opportunities, as demonstrated by its excellent operational and financial performance and strong balance sheet which provides both strategic and financial flexibility.”

Commenting on the announcement, Jeremy Darroch, BSkyB’s Chief Executive, said: “We are delivering on our clear, consistent strategy and are building a larger, more profitable business for the long term. We remain very confident in the broadly based growth opportunity for BSkyB as we continue to add new customers, sell more products, develop our leading position in content and innovation, and expand the contribution from our other businesses. I would like to commend all our employees for their unrelenting focus throughout the offer period and thank them for their continuing support.”
Nicholas Ferguson, BSkyB’s Deputy Chairman and Senior Independent Non-Executive Director, added: “Since the start of the offer period, BSkyB’s management team has remained fully focused on its strategic and operational priorities, as evidenced in the strong results reported for the first nine months of the financial year. With good momentum and a range of options for continued growth, BSkyB is well positioned to increase earnings and cash flow and deliver higher returns for shareholders.”
A Downing Street Spokesperson said: “We welcome the news. As the Prime Minister has said, the business should focus on clearing up the mess and getting its own house in order.”