Murdoch’s firm pulls out of controversial BskyB bid
Rupert Murdoch’s News Corporation has withdrawn its controversial bid for the 60pc it does not already own of TV giant BskyB.
The move came after British Prime Minister David Cameron called for the company to pull out of the bidding and clean up its own business in the wake of continued allegations of illegal phone hacking.
"This business has got to stop, the business of mergers, and it [News Corp.] needs to get on with cleaning its stables," Cameron said during the weekly Prime Minister's Questions session in the House of Commons.
Cameron also said the relationship between politicians and the media must change and also called for more transparency.
The prime minister continued to come under strong criticism for hiring former News of the World editor Andy Coulson to be head media adviser.
Ed Miliband, the leader of the main opposition Labour Party, said Cameron's decision to hire Mr Coulson was "a catastrophic error of judgment."
Mr Cameron said if Coulson lied to him, lied to the police or to the select committee then that "is a matter for criminal prosecution."
News Corp.'s U.K. newspaper division News International has become embroiled in a phone-hacking scandal that led to the closure of the News of the World tabloid Sunday.
New allegations emerged this week from former prime minister Gordon Brown who claimed News International's broadsheet Sunday Times and its tabloid Sun newspaper may also be involved.
However, News International has denied allegations that it had accessed, or hired anyone to access, the medical records of Brown's baby son.