Rupert Murdoch’s News Corp is taking a financial hit from hacking scandal

Wednesday, 06 July 2011 15:23
murdoch112009_optBY BOB HOLT

The News of the World is a British tabloid newspaper published on Sundays by News Group Newspapers of News International, a subsidiary of Rupert Murdoch's News Corporation. It’s closer to Maxim magazine than Time.

But lately, the paper has found itself involved in an alleged phone hacking scandal of missing schoolgirls and the families of victims in the 2005 terror attacks in London.

CNN reports that Graham Foulkes, whose son was killed in a London attack, said his phone number and home address had been found in the files of a private investigator working for Murdoch’s newspaper. Foulkes's son was among 52 people who were killed when suicide bombers attacked three London Underground trains and a bus.

Previously there had been allegations that journalists also hacked into the phone messages of missing teenager Milly Dowler in 2002, who was later found murdered.

According to the Financial Times, Murdoch, who called the hacking deplorable and unacceptable, promised his company would co-operate fully with the police investigation. “That is exactly what News International has been doing and will continue to do under Rebekah Brooks' leadership," Murdoch said in a statement, according to the Guardian. Brooks had been editor of News of the World when the alleged hacking took place.

Forbes reported that the News of the World was losing advertisers quickly. Ford was the first to bail out, followed by Renault, Mitsubishi, and Vauxhall.

This is not even the first incident for the News of the World. A private investigator and a journalist working for the newspaper went to prison in 2007 for hacking into the voice mails of royal staff.

Police are also looking into accusations of widespread phone hacking of politicians and celebrities by News of the World. Actor Hugh Grant said police had visited him during their investigation.

Britain's communications regulator said it is monitoring the investigation to be sure that News Corporation is a "fit and proper" company to have a broadcasting license.

Rupert Murdoch’s holdings also consist of Fox News, the Wall Street Journal, the New York Post and Harper Collins publishers.