Rupert Murdoch has dropped his plans to relocate 21st Century Fox and News Corp. to 2 World Trade Center.

In a statement issued Friday afternoon, World Trade Center developer Larry Silverstein declared himself “disappointed” by the news.

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“Make no mistake: it won’t be long before we find a great company to anchor 2 World Trade Center,” he said.

In June, the two media companies signed a letter of intent with Silverstein to occupy 1.5 million square feet for 30 years at a 2 World Trade Center designed by architect Bjarke Ingels.

But the deal spurred controversy, after it was revealed that New York State and the Port Authority intended to subsidize the lease.

Following the uproar, those subsidies were scaled back, somewhat. It's not clear why the deal fell apart.

On Friday afternoon, Murdoch's sons, James Murdoch, the CEO of 21st Century Fox, and Lachlan Murdoch, who co-chairs both companies, sent a memo to employees explaining the decision to stay at 1211 and 1185 Avenue of the Americas.

"Thanks to all of you, our business has great momentum, but we have concluded that a relocation project of this scope could be distracting in the near-term and, given the scale of investment in a relocation of this size, that our resources would be better directed elsewhere," they said.

They also indicated that they have "extension options that could continue our occupancy in our current sites through 2025."

Rupert Murdoch, who is executive chairman of both 21st Century Fox and News Corp., was asked about the companies' real estate plans in an interview with Fortune that was published shortly before the announcement went out.

"Um … I don’t think we’ve given an announcement on that," he said. "Beginning of next week. So I’d better keep quiet. So I’m sorry — you’ll have something quite soon."

Murdoch is, from a real estate standpoint, bucking a trend.

In the past few years, outlets including Condé Nast, Time Inc, the Associated Press, the Daily News, Newsweek and the Village Voice have all either moved to the area around the World Trade Center and the Financial District or announced plans to do so. (Condé Nast is the anchor tenant of 1 World Trade Center.)

21st Century Fox, which includes Fox News and Fox Broadcast Network, and News Corp., which includes The Wall Street Journal and the New York Post, would have been a significant addition to the cabal.