Murdoch continues to face storm of protest

By By Lucy Barbour | 11 July 2011
 
Image source: Wikimedia Commons.

As the last ever copies of News of the World rolled off the printing presses on Sunday, Rupert Murdoch had more than a newspaper to mull over.

The media tycoon arrived in London from the United States late on Saturday to face an awaiting storm of controversy surrounding alleged phone hacking at his 168-year-old newspaper.

Former News of the World news editor and communications director for Prime Minister David Cameron, Andy Coulson, was arrested on Friday on suspicion of involvement in the phone hacking and making illegal police payments. Coulson was news editor from 2003-2007.

He has been released on bail until October. It is believed that nine other journalists and three police officers also face jail. 

With Coulson struck down, News International's chief executive, Rebekah Brooks, will also face questioning from Scotland Yard regarding their inquiries.

Brooks' decision not to resign following the newspaper's closure has left a bitter taste in the mouths of a disgruntled public and staff. She was editor at News of the World during the period in which the hacking is alleged to have taken place.

Regardless, Murdoch is backing Brooks all the way and has made no mention of letting her go.

Meanwhile, Murdoch's attempt to increase his stake in BskyB from 39% to full ownership could be put on hold for several months.

The original bid had looked positive for News Corp, and the company was set to take over within the next few days.

British opposition leader Ed Miliband has called for the House of Commons to vote on whether the take over announcement should be delayed, pending the police investigation.

He told BBC News that the possibility that Murdoch's News Corporation “should be allowed to take over BSkyB, to get that 100 percent stake, without the criminal investigation having been completed...frankly that just won’t wash with the public.”

The recent events surrounding News of the World include allegations that journalists hacked into the mobile phone voicemails of murder, war and terrorist attack victims and their relatives, and also paid police for information for stories. 

The revelations caused such widespread outcry that Murdoch gave son and News Corp acting chief executive, James Murdoch, the green light to close the newsapaper and make its 200 staff redundant. 

Rumours are rife that News Corp is planning to morph it's tabloid, The Sun, a former competitor of the News of the World, into a seven-day-a-week publication, but News International have refused to comment.

The newspaper's closure followed the withdrawal of major advertisers including Ford and Mitsubishi Motors. Now questions have been raised over where the surplus ad spend will be allocated.

It's been reported that News of the World, which sold approximately 2.6 million copies each week, generated around £35-40 million in advertising annually.
 
Some media buyers are tipping that the money will stay in print advertising. Associated Newspapers the Mail on Sunday, which has a circulation of 1.9 million according to figures from the Audit Bureau of Circulation for May, and the Sunday Mirror, which has a circulation of 1.1 million in May 2011, have been flagged by media buyers as possible options.

The final News of the World print run was increased to five million copies.

The newspaper made its name for reporting scandalous scoops about sex, celebrities, crime and politicians.

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