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July 11, 2011

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Murdoch flies in to save deal

Media baron Rupert Murdoch flew into London yesterday to tackle a phone-hacking scandal that has sent tremors through the British political establishment and may cost him a multi-billion dollar broadcasting deal.

Murdoch, 80, swept into his London headquarters in the passenger seat of a red Range Rover, holding up the last edition of the News of the World, the paper he had closed hours earlier in a bid to contain the crisis.

Wearing a white panama-style hat, he ignored reporters at the entrance, focusing his attention on the newspaper he bought in 1969 as the cornerstone of a vast media empire. His car sped out of the complex again 15 minutes later but it was not clear what meetings he had planned.

Best known for its lurid headlines exposing misadventures of the rich, royal and famous, the last News of the World said simply "Thank You & Goodbye" over a montage of some of its most celebrated stories of the past 168 years. For admirers it had been a stock feature of lazy Sundays, for critics it had become a symbol of craven irresponsibility in the British media.

"All human life was here," the News of the World declared.

Murdoch had seemed on the point of clinching approval for a cherished prize, the buyout of satellite broadcaster BSkyB, but revelations that phone-hacking had extended beyond celebrities to relatives of a murdered girl, victims of 2005 London bomb attacks and soldiers killed in action stirred broad public anger.

Editor Colin Myler told reporters outside the newspaper's offices he regretted the newspaper's closure. "This is not where we wanted to be and it's not where we deserve to be, but as a final tribute to 7.5 million readers, this is for you and for the staff, thank you."

The scandal has raised questions about relations between politicians, including Prime Minister David Cameron - who hired a former editor of the paper as his spin doctor - and media barons such as News Corp Chief Executive Murdoch.

It has also brought to light accusations that journalists working for Murdoch and others illegally paid police for information.

Cameron's opponents have scented an opportunity in their efforts to block Murdoch's US$14 billion bid for the 61 percent of the profitable pay-TV operator BSkyB that News Corp, the world's largest news conglomerate, does not already own.

Previously, those looking at whether Murdoch should get the go-ahead have focused on whether it would give him too much power over Britain's media.

But allegations that senior editors were involved in illegally accessing voicemail messages and paying police for informations have now prompted regulator Ofcom to say it will consider whether News Corp directors are "fit and proper" persons to run BSkyB.

The Sunday Times said that at least nine journalists and three police officers were facing jail in connection with the scandal and reported that further arrests were likely.




 

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