LONDON, July 13 (UPI) -- Rupert Murdoch's News Corp. said Wednesday it was pulling its bid for British Sky Broadcasting, saying the charged climate made the acquisition difficult.
All three main political parties were ready to call on News Corp. to abandon its offer in a vote in the House of Commons later Wednesday, The Guardian reported.
The decision to walk away leaves News Corp.'s strategy in Britain in shambles, observers said. The proposed $12.7 billion deal to acquire the 61 percent of BSkyB not owned by Murdoch has been in the works for more than a year, with an initial offer tabled in June 2010.
The trans-Atlantic media mogul and News Corp. are embroiled in allegations of phone-hacking by reporters at the News of the World tabloid, which News Corp. shuttered Sunday.
The decision to walk away from the deal likely will be considered a huge blow to James Murdoch, third in command at the company who is responsible for News Corp.'s British concerns, including its stake in BSkyB, The Guardian said.
Chase Carey, News Corp. deputy chairman and chief operating officer, said it become apparent the takeover bid "is too difficult to progress in this climate."
"We believed that the proposed acquisition of BSkyB by News Corp. would benefit both companies but it has become clear that it is too difficult to progress in this climate," said Carey, who also serves as News Corp.'s president.
After the announcement, BSkyB's share price tumbled, losing about 3.4 percent to $10.67 a share after the announcement.