News Corp is abandoning its planned bid to be the full owner of BSkyB.

The House of Commons were in the process of preparing to vote for a motion that would not allow Rupert Murdoch to bid. All three main party leaders had said they supported the motion. A source close to the media group said it felt the situation had become “too politicised” for it to continue with its offer.

The withdrawal of the 7.8 billion-pound proposed bid for 61% of Britain’s largest pay-TV broadcaster that News Corp doesn’t own will stop them having full access to BskyB’s rising cash flow. The deal has been opposed by the Guardian, Daily Mail and Telegraph newspapers. It will be interesting to see if this is the full extent of the damage to the empire.

How will the closure of the News of the world affect our industry?

The closure of the News of the World has been a hot topic of debate across the country for the last few days, but it is still unknown the repercussions will be on the media and advertising industry. News of the World had a circulation of 2.6 million and its sales formed more than a quarter of the total sales of the Sunday papers. Guardian reported that NOTW annual ad revenues were at £38m this is now expected to go to other media. Whether this will be allocated to print media is another issue, with digital and mobile media growing at an enormous pace due to targeting capability, it is likely companies’ ad spend will switch to these avenues.

Notw’s Sunday sales amounted up to 27% of total Sunday newspaper sales, surely the other papers will now try and capture this audience. We’ve heard the Daily Star Sunday are planning to double their print run on Sunday and the Associated Newspaper who own The Daily Mail and Mail on Sunday are launching a direct marketing campaign on Monday There is much speculation about whether The Sun will launch a Sunday edition. www.sunonsunday.com has recently been registered.

So how does this affect the financial media industry? ‘Any closure of a publication is bad news for our industry’ says Hugh Perkins, Director of White Spider Media. ‘It’s completely unfair for all the respectable journalists and sales managers will have lost their jobs at the cost of others unjust behaviour’. Approximately 200 editorial jobs will go at News International additionally a whole range of freelancers are likely to lose out. We have seen NOTW literally fall and unravel right in front of us. Inquiries are now to be made on how this happened, the first to investigate the corruption of criminal investigation and the second to focus on the ethics of journalism.