New York—As the shuttering of its News of the World
tabloid did little to appease U.K. regulators angered by a phone hacking scandal, News Corp. announced it has abandoned its effort to acquire the portion of British Sky Broadcasting Group it doesn't already own.
“We believed that the proposed acquisition of BSkyB by News Corp. would benefit both companies, but it has become clear that it is too difficult to progress in this climate,” Chase Carey, deputy chairman-president-COO of News Corp., said in a statement. “News Corp. remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it.”