Reuters reports: Prime Minister Benjamin Netanyahu, under police investigation for suspected corruption, was caught on tape negotiating mutual benefits with an arch-foe, the owner of one of Israel’s largest-selling newspapers, Israeli media reported on Sunday.

The report, which Israeli media outlets described as “an earthquake” that could have implications for Netanyahu’s political future, drew no immediate comment from the prime minister or Yedioth Ahronoth daily owner Noni Mozes.

Channel Two television said the right-wing leader had offered to limit the circulation of Israel Hayom, a free, pro-Netanyahu daily owned and published by U.S. billionaire and Republican party donor Sheldon Adelson, if Mozes’ Yedioth Ahronoth gave the prime minister more favorable coverage.

Steps to cut Israel Hayom’s market-leading circulation could have financial benefits for Mozes, whose newspaper’s advertising revenues have been hit by its free competitor.

It was unclear exactly when the reported conversation took place. The Haaretz daily said it occurred several months ago. [Continue reading…]