In Turmoil, News Corp. Pivots on BSkyB
News Corp. took steps that will delay its proposed takeover of the BSkyB satellite-TV operation, as the company hopes to wait out the phone-hacking furor that continued to batter it Monday.
The moves, which could postpone approval of a deal for six months or more, exposes the takeover of British Sky Broadcasting Group PLC to new and unpredictable risks at a time when U.K. political support has largely deserted it. Both News Corp. BSkyB shares were sharply lower Monday.
The company appeared to have few other options as the deal became a lightning rod for public outcry over reporting tactics at News Corp.’s U.K. newspaper unit. Those include recent allegations that News Corp. journalists accessed the mobile-phone voice mails of politicians, celebrities and even crime victims.
