LONDON - 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.

"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.

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

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 the BSkyB share and was bidding for the remaining shares, but it 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.

The police estimated that around 4,000 people, including celebrities, servicemen and servicewomen and even the families of the victims of the 7 July London bomb terrorist attack in 2005, became the targets of the paper's hacking.