> Market cap before dropped bid: $22.o billion
> Market cap after dropped bid: $18.7 billion pounds
> Shareholder loss: $5 billion
News Corp. has faced a wave of bad press and bad fortune since it was revealed that the company’s News of the World tabloid had hacked many private voice mails. Today, shareholders of the British Sky Broadcasting Group joined the ranks of those being affected. News Corp. announced early this morning that it was abandoning its bid to acquire the remaining 60.1% of the company that it does not already own.
The decision, which the Wall Street Journal reports was encouraged by British Prime Minister David Cameron, sent shares tumbling. As recently as July 4, shares of BSB were trading for 850 p. They have since dropped as low as 665 p. The company’s market cap has decreased 25%, from $22 billion to $18.7 billion. BSB shareholders, therefore, have lost 33 billion pounds.
News of the World’s actions have triggered a national inquiry into media practices in England. Until the bad press begins to die down, it is unlikely that News Corp. will continue its acquisition of BSB.