The Latest on News Corp.’s BskyB Deal: Takeover Delayed, Sky News Spinoff Nixed

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By Alex Weprin Comments

The News of the World hacking scandal continues to take dramatic turns, and now may even derail News Corp.’s attempt to acquire a controlling stake in British broadcaster BskyB.

Brand Republic reports that News Corp. has withdrawn undertakings it has promised to the government, delaying the BskyB process for months, and possibly longer… if the government even allows it to continue. Unlike in the U.S., where a company makes a deal to acquire another and then seeks government approval, in the U.K. the process is effectively reverse, with the government having to grant approval first.

As part of the move, News Corp. has withdrawn its plans to spin off Sky News as part of the deal to acquire BskyB.

Elsewhere, News Corp. shareholders that were suing the company over its acquisition of Shine (the production company that was owned by Rupert Murdoch’s daughter Elisabeth Murdoch), have woven in the hacking scandal into the suit.