News Corp. Dropping BSkyB Bid

That sound you  just heard was Rupert Murdoch reluctantly and angrily slamming the door on the BSkyB bid. We guessed yesterday that News Corp.’s plan to take complete control over British Sky Broadcasting was toast, and now it’s official. BSkyB reports, “News Corporation announces that it no longer intends to make an offer for the entire issued and to be issued share capital of British Sky Broadcasting Group PLC (“BSkyB”) not already owned by it.”

Chase Carey, News Corp.’s Deputy Chairman, said of the big news, “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.”

Yeah, things tend to get a little sticky when vast corruption is rumored to be present in virtually every media unit owned by your company. Makes deals and such a little difficult. FishbowlNY suggests using sticky notes with the following written on them: “Corruption = Bad for business. No corruption = Good for business.”

The stunning reversal also comes as British Prime Minister David Cameron tries to separate himself from ties to News Corp. and The News of The World. The New York Times says that Cameron announced an inquiry into the phone hacking scandal, obviously hoping that this would gain him some positive reactions as cynicism around his connection with News Corp. grows.

And just wait until next week, when Murdoch has to answer the call of Parliament. There might be a lot of door slamming then too, but that’s just a hunch.