Murdoch pulls $12.5bn BSkyB bid after phone hacking fallout

Media tycoon Rupert Murdoch has withdrawn his $AUD12.5 billion full takeover bid for pay-TV company BSkyB.

The decision follows an extraordinary show of unity from British politicians who rallied to vote against the bid in light of the phone hacking scandal swamping his British newspapers.

'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,' Chief Operating Officer of News Corp, Chase Carey, said.

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