By Hazel Butters

July 11th, 2011

News of the World closes: A can of political, media and legal worms opens

News of the World closes: A can of political, media and legal worms opens

Yesterday saw the last edition of the ‘News of the World’, with a double print run and a promise that all profits would go to charity. The paper’s closure was announced earlier in the week by Rupert Murdoch, the CEO and chairman of News Corporation, in reaction to escalating stories of illegal news-gathering tactics used by the paper, including phone-hacking on what is now being called an ‘industrial scale’, as well as bribery of police officers. The alleged phone-hacking targets include celebrities, politicians, and even 13-year-old murder victim Milly Dowler, in which case it is alleged that messages were not only accessed but also deleted from her phone.

The story goes beyond the closure of Britain’s largest-selling Sunday newspaper, which had been printed for 168 years. There’s a whole set of legal and political battles to come, including the control of UK satellite broadcaster Sky (BSkyB).  Some other points for consideration:

* The Independent on Sunday reported that UK Prime Minister David Cameron had received a “personal guarantee” from Rupert Murdoch that the former News of the World editor Andy Coulson was a safe bet to take on as press chief for Downing Street. After Coulson’s recent arrest, there is speculation that he may be one of the central figures in the scandal. He says he will not “carry the can”.

* Scotland Yard’s assistant commissioner John Yates gave a public apology for the failure to uncover the scale of the phone-hacking and letting down the victims. Scotland Yard launched – and closed – an investigation of phone-hacking in 2009.

* Rebekah Brooks, chief executive of News International, the British newspaper publisher owned by News Corporation, stated “I know nothing”.  There have been calls for her resignation and she faces questioning by police.

* There are calls for the Government to increase press regulation, a challenge to the historic freedom of the UK press.

The scandal is also disrupting Rupert Murdoch’s proposed takeover of BSkyB, Britain’s largest commercial broadcaster, as well as damaging his standing with the UK Government. This morning in the UK, analysts reported that the takeover was “all but dead”, and there’s even speculation that News Corporation will be stripped of its existing 39% share of BSkyB. Meanwhile, the company’s shares have plummeted. This morning, Deputy Prime Minister Nick Clegg said Rupert Murdoch should “do the decent thing” and reconsider his BSkyB bid.

Now the British press – and the British public – are trying to piece together who knew what and when. The twists and turns of the last week have been like a movie plot. Expect the sequel this week.