Murdoch snubbed by Australian govt, loses TV contract

Communications Minister Stephen Conroy announced that "the government has determined that Australia's international broadcasting service should be delivered by the national broadcaster," ending months of tussle between ABC and Sky news, who were competing for the contract, ABC reported.

The minister said the government has decided that the contract for the Australia Network international television service will remain with the ABC after the authorities scrapped the tender process last month, citing damaging leaks to the media.

Federal Police were called in to find the source of the leaks, which detailed confidential bids to run the government's international television service.

Leaks  to the media had suggested that Sky was poised to win the USD 227 million contract to run the Australian network, which is partly funded by the government and is beamed to 44 countries in Asia and Pacific.

Sky news is part owned by Britain's BSkyB, which in turn is owned by Murdoch's News Corporation.