08/07 16:37 CET
BSkyB shares slumped further on Friday because of the phone hacking scandal involving Rupert Murdoch’s News Of The World tabloid newspaper.
The UK government has warned it will take “some time” to reach a decision on whether to allow Murdoch to take full control of the British pay-TV satellite broadcaster.
Murdoch has to have government permission to acquire the 61 percent stake in BSkyB he does not already own.
The Department for Media has examined News Corp’s planned takeover of BSkyB in terms of whether it will affect media plurality and the number of “media voices” present in Britain.
After the sudden closure of Britain’s biggest-selling Sunday newspaper due to its involvement a phone hacking scandal, the government warned that its final decision could “take some time” due to the number of responses submitted to a final consultation, all adding to an increasingly uncertain picture around the deal.
“The Secretary of State … will consider all relevant factors including whether the announcement regarding the News of the World’s closure has any impact on the question of media plurality,” it said in a statement.
The British government had always said that the phone hacking scandal and the BSkyB takeover were not linked from a legal standpoint but analysts, who had widely expected the deal to be approved, have started to turn more cautious.
“I don’t see how this deal can go ahead now,” said Panmure Gordon’s Alex DeGroote while warning the speed at which events are unfolding meant investors were “into totally uncharted territory”.
When staff leave the building for the last time, the newsroom floor will become a designated crime scene.'Anger'
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08/07 19:33 CET
The phone hacking scandal in the UK is spreading.
Police have arrested Andy Coulson, the former editor of the News of the World, the paper at the heart of the row that is now being shut down.
Coulson went on to become David Cameron’s spokesman.
The British prime minister addressed that issue today – and called for new press regulations.
“I believe we need a new system entirely,” he said. “It will be for the inquiry to recommend what the system should look like. But my starting presumption is that it should be truly independent – independent of the press so that the public will know that newspapers will never again be solely responsible for policing themselves, but vitally independent of government so the public will know that politicians are not trying to control or muzzle a press that must be free to hold politicians to account.”
The News of the World is owned by Rupert Murdoch. The hacking scandal has increased public opposition to his efforts to expand his empire in the UK.
But police have also been searching another tabloid paper’s offices today.
And they have re-arrested a former royal correspondant from the News of the World.
The paper’s last edition may be this Sunday. But it looks like it will be making headlines for some time to come.
09/07
Media mogul Rupert Murdoch is flying to London on Sunday to safeguard his multi-billion euro British business empire.
His arrival coincides with the final edition of the News of the World, the tabloid at the centre of a phone hacking scandal.
The Australian tycoon has sacrificed the UK’s best selling paper to try to protect his buyout of satellite broadcaster BskyB.
Andy Coulson, ex-Editor and former spokesman to Prime Minister David Cameron has been released on bail after being arrested in connection with the scandal.
Meanwhile Shadow Culture Secretary Ivan Lewis from the opposition Labour party has written to the British leader demanding he speed up the start of a public inquiry into the allegations.
“There is such a level of public concern at this issue, as well as real concerns about preserving the relevant documentation (relating to the inquiry) which will enable people to get to the bottom of this,” he said.
“The appointment of the judge today is absolutely crucial.”
Rupert Murdoch’s 15.7 billion euro buy-out of the UK’s main pay TV network has been put on hold.
The 80-year-old will have to wait six months to find out if lawmakers demand stronger media ownership rules.
Sunday is the final day of Britain’s oldest newspaper, which printed its first edition in 1843.
Ironically, despite popular Facebook campaigns calling for a boycott of the paper, editors say they are planning to double tomorrow’s print run.
08/07 10:54 CET
It is a newspaper known for its scoops, scandals and celebrity gossip. Nicknamed News of the Screws (as in ‘who’s been screwing who?’), it has been something of an institution in the UK, albeit one that is looked down on by the snobbier elements of the press. In the last few days it has been deserted by its advertisers and by its own readers. The announcement that the weekly tabloid the News of the World will print its last issue on Sunday has sent a shock-wave through Britain’s media landscape. And the repercussions may be even more significant.
After 168 years of existence, and despite remaining profitable and popular, Rupert Murdoch’s News International has decided that the phone hacking scandal surrounding the NOTW has made the tabloid too toxic for it to handle. Scores of journalists with no connection to the phone hacking affair may lose their jobs.
But there is no room in Murdoch’s world for such sentimentality. Sky News, another of Murdoch’s UK media outlets, reported that the NOTW’s editor was told of his paper’s closure just 20 minutes before it was announced publicly. Business is business. Profitable or not, the newspaper that launched Murdoch internationally in 1969 is still, after all, just a small outpost in his media empire. No big loss to him.
In fact, it’s an opportunity.
The News of the World is not likely to be missed for long. Yes, it has left a void of around 2.5 million Sunday readers, but the speed of its downfall has taken the British media by surprise. No-one saw it coming, meaning no-one is ready to fill the gap in the market – apart, of course, from Murdoch himself. The Sun, a Monday-to-Saturday tabloid, sister paper to the NOTW and another of Murdoch’s flock, is now widely tipped to step into the breach. The Sun on Sunday. Sun every day of the week.
This presents Murdoch with an opportunity to streamline his UK tabloid activities, make some savings and refine his UK media strategy. If the Sun on Sunday does emerge – and the domain name sunonsunday.com was registered on Tuesday – it can take the baton from its sacrificed sister almost seamlessly. Despite being run by the same people as the NOTW, The Sun’s reputation is not likely to suffer from the scandal. Murdoch will have simply re-branded the NOTW, something many observers believe he wanted to do anyway.
Then there is the bigger picture. Before claims emerged that the News of the World had hacked the phones of missing schoolgirls and the families of dead soldiers, Murdoch’s News Corporation was set to be given the government’s green light to buy out BSkyB, the UK’s biggest pay-TV broadcaster. There was very vocal opposition but no compelling legal obstacle to the take-over.
Then the scandal broke and things changed. Suddenly the opponents of the deal had a chance to scupper it; their argument became more convincing. News Corp shares started falling. So Murdoch simply cut theNOTW loose. He washed his hands of the problem.
The take-over is still likely to go ahead, although perhaps not as soon as Murdoch had hoped. If it does, he will have more control over what the UK public reads and watches than any other person in the country’s history. It is a thought the non-Murdoch press dreads but one it believes it now has a fighting chance of stopping.
The fight of the front pages seems about to intensify.
Mark Davis
News Corporation Fact Box
News Corp. is the second-largest media conglomorate in the world (behind the Walt Disney Company). It owns media all over the world including:
Australia
- The Australian newspaper
- GQ Australia magazine
- Vogue Australia magazine
- Fox Studios Australia
USA
- Fox media corporation available to over 96% of Americans.
- Fox News
- New York Post
- Wall Street Journal
- 20th Centrury Fox
UK
- The Times newspaper
- The Sunday Times newspaper
- The Sun newspaper
- News of the World newspaper
- It also owns 39.1% of TV group BSkyB, the UK’s biggest pay-TV broadcaster. It is currently attempting to buy the remaining 60.1%
BSkyB includes:
- Sky News and Sky News international
- Sky Sports
08/07 12:03 CET
Britain’s prime minister has called for a complete overhaul of the UK’s press regulations system in the wake of the media hacking scandal that has forced the closure of the News of the World newspaper.
David Cameron also said that the police inquiry into possible criminal activities at the Sunday tabloid would not answer all the public’s questions. “That is why I want to establish a second inquiry to begin at the earliest available opportunity, ideally now, this summer,” he said. “This inquiry should be conducted by a credible panel of figures drawn from a range of different backgrounds who command the full support, respect and above all confidence of the public. They should be truly independent without any motive but to seek the truth and clean up the press.”
As expected, police arrested Andy Coulson on Friday – the former editor of the News of the World who quit as Cameron’s communications chief as the hacking scandal ballooned.
This Sunday will be the last edition of the paper – just one small part of Rupert Murdoch’s News Corporation empire. But the full fallout of the affair is likely to spread far wider than this one title.
08/07 19:17 CET
Rupert Murdoch is one of the world’s wealthiest individuals who has built a hugely powerful and profitable corporate machine – a media business that politicians ignore or challenge at their own risk.
The question now is how much the phone-tapping allegations could damage Murdoch’s News Corporation.
The sudden closure of the News Of The World – Britain’s biggest-selling Sunday newspaper – came as advertisers fled in response to the phone-tapping.
However he has plenty more sources of revenue – dozens of brands earned 23 billion euros last year.
TV is most profitable turning over 10.5 billion euros, from both the channels themselves and the means of distribution via cable companies. Film studios brought in 5.3 billion and newspapers 4.5 billion.
With newspaper advertising slipping as people turn more to the internet for information Murdoch is concentrating more on TV and that is where the hacking scandal could hurt him.
His request to take full control of UK satellite broadcaster BSkyB is currently awaiting approval by the UK government and will only be allowed if News Corporation is considered to be a “fit and proper” owner.
08/07 12:03 CET
Britain’s prime minister has called for a complete overhaul of the UK’s press regulations system in the wake of the media hacking scandal that has forced the closure of the News of the World newspaper.
David Cameron also said that the police inquiry into possible criminal activities at the Sunday tabloid would not answer all the public’s questions. “That is why I want to establish a second inquiry to begin at the earliest available opportunity, ideally now, this summer,” he said. “This inquiry should be conducted by a credible panel of figures drawn from a range of different backgrounds who command the full support, respect and above all confidence of the public. They should be truly independent without any motive but to seek the truth and clean up the press.”
As expected, police arrested Andy Coulson on Friday – the former editor of the News of the World who quit as Cameron’s communications chief as the hacking scandal ballooned.
This Sunday will be the last edition of the paper – just one small part of Rupert Murdoch’s News Corporation empire. But the full fallout of the affair is likely to spread far wider than this one title.
Richard Branson is to revive Jonathan Ross's career, if his bid to buy Absolute Radio succeeds.Breakfast show
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Branson 'To Give Ross Breakfast Radio Show'
Fri, Jul 8, 2011
Sir Richard Branson is set to revive his Virgin Radio brand and give Jonathan Ross his own breakfast show, Sky's City editor has learned.
Writing on his blog , Mark Kleinman said the pair are part of a consortium which is in talks to buy Absolute Radio, formerly known as Virgin Radio, for around £20m.
The bid, which would see the name return 14 years after Sir Richard sold the business, is being led by former Virgin Radio boss John Pearson.
Kleinman said the Virgin-branded consortium is understood to have been competing with Belfast-based UTV for control of Absolute.
He understands Ross has not formally agreed his involvement but met Sir Richard for talks earlier this week.
The presenter would likely become be a minority shareholder in the venture and would present a flagship breakfast show, Kleinman added.
It would mark his return to radio broadcasting after the 2008 Sachsgate affair, in which he and comedian Russell Brand left lewd messages on the answer phone of actor Andrew Sachs.
Ross left the BBC, including his Friday night chat show, in 2010 after deciding not to renew his contract.
Sir Richard sold Virgin Radio to TV presenter Chris Evans in 1997 for £80m.
It was then sold to Scottish Media Group (SMG) for £225m in 2000, a deal from which Evans personally made £75m.
SMG then sold it to TIML Radio in 2008 for £53.2m.
It was subsequently rebranded as Absolute Radio, which mainly plays guitar-based rock music.
Virgin Group, Pearson and a spokesman for Ross all declined to comment.
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