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LONDON, July 13 (UPI) -- Rupert Murdoch's News Corp. dropped its bid to take over British satellite broadcaster BSkyB Wednesday amid a mushrooming phone-hacking scandal. News Corp. said it would keep the large share it already owns, however.
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Top executive Chase Carey issued a statement saying, "It has become clear that it is too difficult to progress in this climate. News Corporation remains a committed long-term shareholder in BSkyB," The New York Times reported.
The stunning turnaround came just before the House of Commons was to vote on a resolution opposing the media merger.
Prime Minister David Cameron said Lord Justice Leveson, named to lead the investigation into the phone-hacking scandal, will have powers to call media owners, editors and politicians to give evidence under oath and in public, the BBC reported.
He told Parliament the inquiry would begin as "quickly as possible" and would consider regulation of the press as well as wrongdoing.
The prime minister called for a press regime that "supports their freedom, plurality and independence from government but which also demands the highest ethical and professional standards."
Cameron said of News Corp., where he has had close political and personal ties: "There needs to be root and branch change at this entire organization. What has happened at this company is disgraceful. It's got to be addressed at every level."
Earlier Wednesday, Cameron met the parents of Milly Dowler, a 13-year-old girl kidnapped and murdered in 2002. Reports last week that Murdoch's News of the World hacked into her voice mail exploded the scandal and led the Murdochs to abruptly shut down the tabloid. There also have been allegations Murdoch reporters paid off police officials for phone numbers and other information.
