News Corp drops Sky bid

As MPs prepared to debate a motion calling on News Corp to reconsider its BSkyB bid, it does just that and pre-empts them. Chase Carey, Deputy Chairman, President and Chief Operating Officer at News Corp, commented: “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.”

BSkyB commented: “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.”

“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,” said Jeremy Darroch, BSkyB’s Chief Executive.

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.”

Ivan Lewis, the shadow culture secretary, gave his reaction: “It’s a victory for the public of this country, it’s a victory for parliament.”

BSkyB will announce its preliminary results for the 12 months ended 30 June 2011 on 29 July 2011.

You must be logged in to post a comment Login