Media tycoon Rupert Murdoch's News Corporation announced on Wednesday to withdraw its bid for British Sky Broadcasting (BSkyB) after hacking scandals led to the closure of News of the World, its best selling Sunday newspaper in Britain.

News Corporation CEO Rupert Murdoch is driven away from his flat in central London July 13, 2011.  (Xinhua/Reuters Photo)
"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," said News Corp Deputy Chairman Chase Carey in a statement.

The statement said "News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."

Before the announcement, all three major party leaders expressed support for a motion urging Murdoch to quit the takeover.

A spokesman for British Prime Minister David Cameron said "as the prime minister has said, the business should focus on clearing up the mess and getting its own house in order."

The Labor Party Leader Ed Miliband called the news as a victory for people up and down this country who have been appalled by the revelations of the phone hacking scandal and failure of News International to take responsibility.

News Corp has acquired 39.1 percent shares of the BSkyB and it was bidding for the remaining shares, but was heavily affected by the allegation that News of the World journalists intercepted and deleted the voicemail messages of the missing girl Milly Dowler in March 2002, interfering with police inquiries into her disappearance.

VietNamNet/Xinhuanet