Q: What now for the BSkyB bid?
A: Some believe the only way News Corp could complete the takeover of BSkyB would be to sell the three remaining UK newspapers.
There is nothing to stop Murdoch from pursuing a fresh bid as the House of Commons vote is not legally binding, but Parliament could fast-track legislation to block any move.
It is unlikely a new bid will be made until the inquiries into the hacking scandal are finalised, which is likely to take several years. News Corp still has a controlling 39% share in the firm.
Q: Is he not just likely to abandon it altogether?
A: BSkyB’s subscription model provides reliable income in an unstable advertising climate.
The broadcaster easily outstrips the printing side when it comes to money making. News International generates around £80 million of annual operating profit, but in 2010-11 BSkyB is forecast to make operating profit of more than £1 billion. Selling off the newspapers could clear up concerns over media domination and potentially put some distance between the Murdoch empire and the scandal.
Q: What is the mood of investors?
A: It is understood News Corp will have to pay BSkyB a fee of around £38.5 million after walking away. BSkyB’s major shareholders will now expect to see some of that cash themselves, especially as the company has little debt.
Murdoch is spending some of the £8bn earmarked for BSkyB on stabilising the crisis-hit News Corp with a £3.1bn share buyback programme.
A class action lawsuit by shareholders was launched over claims bosses failed to properly investigate phone hacking.
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