Wednesday 13 July 2011

News Corporation withdraws the bid

So, Murdoch and the News Corporation has withdrawn its bid to takeover BskyB in the face of massive public outcry over the amoral working methods of his news gathering operation, and the fatal pressure of an all-party accord to force him to withdraw. It was "too difficult to progress in this climate" - understatement of the century!

It as hailed by Ed Milliband as a victory for the British public - so thanks to Avaaz.org and everyone who added their pressure in this.

The share price for both BskyB and News Corporation have taken a battering and written $5Bn off NI valuation. Undoubtedly the groups will bounce back once Murdoch has crawled back under his stone and licked his wounds. That may be made more difficult as several major advertisers are instructing their agencies to cancel advertising across the News International websites; the printed media is sure to follow suit.

Now we have further questions being asked as to whether James Murdoch is himself a "fit and proper" person to be allowed to hold a broadcasting license in the UK. the Government enquiry may well grind on for a couple of years before we know what shape the landscape becomes.

Whether NI will regroup and make another bid in 6 months or so remains to be seen. Certainly there are discussions afoot to look at far tighter regulation on ownership of broadcast and published media.

The news rolls on...

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