11 Jul 2011

Murdoch in UK to tackle tabloid scandal

11:00 am on 11 July 2011

Media baron Rupert Murdoch has arrived in London to tackle a phone-hacking scandal that may cost him a multi-billion dollar broadcasting deal.

Mr Murdoch, 80, swept into his London headquarters in the front passenger seat of a car, holding up the final edition of the paper.

He later travelled across the city to his London home where he was joined by his embattled newspaper group chief executive Rebekah Brooks.

Mr Murdoch has closed the tabloid News of the World after allegations it hacked into the phones of perhaps 4000 people.

Revelations that phone-hacking had extended beyond celebrities to a murdered girl and to relatives of victims of the 2005 London bomb attacks and of soldiers killed in action stirred broad public anger.

Accusations have been made that journalists working for Mr Murdoch and others illegally paid police for information.

British Prime Minister David Cameron joined calls for Ms Brooks to step down as chief executive of News Corp's News International arm but the media baron has said she has his total support.

Media analysts say the scandal has thrown into doubt Mr Murdoch's $US14 billion bid for the 61% of the profitable pay-TV operator BSkyB that News Corp does not already own.

Regulator Ofcom says it will consider whether News Corp directors are "fit and proper" persons to run BSkyB.

The government has received more than 135,000 public complaints against the BSkyB deal.