Category Archives: Rupert Murdoch

Where are the next News Corp whistle-blowers?

Does the death of Sean Hoare suggest that anyone who exposes wrongdoing inside the Murdoch empire is putting their life at risk? I don’t think so.

Hoare’s health had been compromised by alcohol and drug addiction. A few days before he died he got accidentally whacked on the head by a relative carrying a heavy pole as they took down a marquee at a children’s party. Reporters for the New York Times who dined with him in his last days described him as “ailing.”

The police force that ordered Hoare’s autopsy is the Hertfordshire force — not the Metropolitan police where officers accepted bribes from News International. The type of autopsy conducted was one ordinarily used in cases of suspicious death, even though investigators have not identified suspicious circumstances.

But now that News International has pulled the plug on its financial aid for Glenn Mulcaire and the world waits for him to break his silence, if he too suddenly dies then of course both deaths would be massively suspicious. Absent such an extraordinary turn of events, I think the reason other News Corp employees don’t speak out has more to do with fears for their wealth than their health.

In 2009, Fox News anchor Stuart Varney set the standard when it comes to the proposition that anyone on his payroll should dare challenge Emperor Murdoch.

Should we be surprised that a Fox journalist would assume such a supine position in relation to his boss? Only if we imagine News Corp attracts employees who are more interested in practicing journalism than they are in the size of their pay checks.

Consider the example of the editors of Murdoch’s Times of London. Today they assumed the posture of having greater concern about starvation in Somalia than they do about the phone hacking story and so they ran this cartoon:

Does the situation in Somalia deserve greater media attention? Of course. But if the Times actually thinks its competitors’ priorities are skewed, how come they couldn’t find space for a single paragraph on Somalia on their own front page?

If a few of Murdoch’s employees are now having sleepless nights wondering whether they should speak out and risk losing their jobs, they must also know that the decision of any whistle-blower is one of the loneliest. Anyone who jumps off the Murdoch ship is unlikely to be quickly offered a lifeline from another.

The corporate media world of which the Murdoch empire is merely one part, does not foster a culture that rewards integrity. Team players are an asset; individuals with an unshackled conscience are risky. Those whose job it is to report, know that there are times when nothing is more highly prized by their employers than their silence.

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Phone hacking: Met police to investigate mobile tracking claims

The Guardian reports:

Scotland Yard has been asked to inspect thousands of files that could reveal whether its officers unlawfully procured mobile phone-tracking data for News of the World reporters.

There were half a million requests by public authorities for communications data in the UK last year – of which almost 144,000 were demands for “traffic” data, which includes location.

A Metropolitan Police Authority (MPA) member has asked the force to investigate allegations that News of the World reporters were able to purchase this data from police for £300 per request.

The claims were made by Sean Hoare, the News of the World whistleblower, days before he was found dead at his home on Monday. His disclosure about the purchase of illicit location data was first made to the New York Times, which said the practice was confirmed by a second source at the tabloid. Police have said Hoare’s death was not suspicious.

Mobile phone location data, which is highly regulated, would give tabloid reporters access to a method of almost total surveillance, arguably even more intrusive than hacking into phone messages.

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News Corp and the hacked Climategate emails: time for an independent investigation

Joe Romm writes:

There have been countless independent investigations into the scientists whose e-mails were hacked in November 2009. And the scientists have been (quietly) vindicated every time (see “The first rule of vindicating climate science is you do not talk about vindicating climate science“).

But we still don’t know who hacked the emails! And now we know that one of the key investigative bodies tasked with tracking down the hackers — Scotland Yard – were compromised at the time.

How were they compromised? Neil Wallis — the former News of the World executive editor — became a “£1,000 a day” consultant to Scotland Yard in October 2009. Last week he became the ninth person arrested in the metastasizing News Corp scandal “on suspicion of conspiring to intercept communications, contrary to section 1(1) Criminal Law Act 1977.”

Certainly Wallis had plenty of motive to join Scotland Yard just to keep an eye on the investigation into the phone-hacking scandal. Indeed, the NY Times reports Wallis “was reporting back to News International while he was working for the police on the hacking case.” But this also suggests how corrupt Wallis was — and how corrupted Scotland Yard was.

In the light of the News Corp phone-hacking scandal, it is clear that Murdoch’s outfit had means, motive, and opportunity for the Climategate email hacking. News Corp certainly has a history of defaming climate scientists and a penchant for hacking.

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LulzSec claims to have News International emails

The Guardian reports:

One of the members of the LulzSec hacking group has claimed on Twitter that the group has got 4GB of emails taken from the Sun and the “royal family” which may be released as soon as lunchtime on Thursday.

The claim follows a hacking attack against News International on Tuesday night during which members of LulzSec apparently broke into computer systems there and redirected readers of the Sun’s website to a faked page claiming News Corp chief executive Rupert Murdoch had been found dead.

Significantly, the group also seems to have broken into the email database at News International.

Some accounts belonging to Anonymous also began tweeting email addresses and passwords for staff at News International, including what seemed to be an email account and password for Rebekah Brooks under her previous married name of Wade while at the Sun.

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Murdoch: This scandal has exposed the scale of elite corruption

Seumas Milne writes:

The Tory operation to bury the phone-hacking scandal in spin and official inquiries is now in full flow. On his way back from Africa, David Cameron declared it was essential to get the whole business into perspective, echoing Rupert Murdoch’s insistence that his competitors had got up “this hysteria”. Today, the prime minister chided Ed Miliband for “chasing conspiracy theories” and claimed it was really Gordon Brown who had been in the pocket of the global media billionaire.

Meanwhile, News International pundits and others with their own reasons to stem the flood of revelations have been loudly insisting that the political clout of Murdoch’s corporate colossus has been exaggerated. The hyper-regulated BBC is the real media monopoly, they say, and in any case the current fixation with phone hacking has meant no one is discussing bankers’ bonuses and the threat of another financial meltdown. This is a “frenzy that has grown out of control”, the Daily Mail complained.

But the real frenzy isn’t the exposure of the scandal – it’s the scale of corruption, collusion and cover-up between News International, politicians and police that the scandal has revealed. As the cast of hacking victims, blaggers and blackmailers has lengthened, and the details of the incestuous payments and job-swapping between News International, government and Scotland Yard become more complex, it’s easy to lose sight of the bigger picture that is now emerging.

If it were not for the uncovering of this cesspit, the Cameron government would be preparing to nod through the outright takeover of BSkyB by News International, taking its dominance of Britain’s media and political world into Silvio Berlusconi territory. But what has been exposed now goes well beyond the hacking of murder victims and dead soldiers’ families – or even the media itself. The scandal has lifted the lid on how power is really exercised in 21st-century Britain – in which the unreformed City and its bankers play a central part.

Murdoch’s overweening political influence has long been recognised, from well before Tony Blair flew to Australia in 1995 to pay public homage at his corporate court. What has been less well understood is how close-up and personal the pressure exerted by his organisation has been throughout public life. The fear that those who crossed him would be given the full tabloid treatment over their personal misdemeanours, real or imagined, has proved to be a powerful Mafia-like racket.

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News Corp’s three wise monkeys knew nothing

Roy Greenslade, who was a senior executive at two News International titles, The Sun and the Sunday Times, says that Rupert Murdoch’s testimony in Britain’s House of Commons yesterday, where he essentially plead ignorance about wrongdoing inside News of the World, clashes with Greenslade’s own experience of the way Murdoch oversees the operations of his companies.

At both newspapers, I was close enough to the editors – sometimes standing in as editor myself – to witness how Rupert Murdoch operated. Despite living in the United States, he ensured that he knew everything that happened at his British papers.

In phone calls marked by a mixture of abrupt questions and periods of intimidating silence, he elicited information from his editors and managers about intimate details of both editorial and commercial affairs.

It was impossible to conceive that anyone would lie to Murdoch either by commission or omission. He was street smart. He saw through bluster and he was not above testing the veracity of what he was told by one executive by running it past another.

His cross-referencing of his internal company sources was journalistic. He wanted to hear the minutiae; who had said what to whom? He relished the gossip.

In those days he was already running a giant company, with a Hollywood film studio, a burgeoning US TV network and media outlets across the world. It is fair to say that, by the turn of the millennium, it had grown bigger still, most noticeably due to News Corp’s global pay-TV interests.

It is also undeniable, as his faltering performance yesterday illustrated, that as Murdoch’s company expanded so he grew older. So he may well have been altogether less hands-on in the past decade than he was during the time I worked for him.

Then again, it beggars belief that he didn’t smell a rat in 2006 when the News of the World‘s royal editor Clive Goodman was arrested along with a private investigator, Glenn Mulcaire, who was being paid more than £100,000 a year under a contract with the paper.

That was the moment I would have expected him to ask searching questions of the editor and the chief executive of his News International division in Wapping. Did he really accept the public stance about voicemail interception being confined to a single rogue reporter?

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Amid Murdoch scandal, Israel backers worry about muting of pro-Israel media voice

Ron Kampeas reports:

Pro-Israel leaders in the United States, Britain and Australia are warily watching the unfolding of the phone-hacking scandal that is threatening to engulf the media empire of Rupert Murdoch, founder of News Corp.

Murdoch’s sudden massive reversal of fortune — with 10 top former staffers and executives under arrest in Britain for hacking into the phones of public figures and a murdered schoolgirl, and paying off the police and journalists — has supporters of Israel worried that a diminished Murdoch presence may mute the strongly pro-Israel voice of many of the publications he owns.

“His publications and media have proven to be fairer on the issue of Israel than the rest of the media,” said Malcolm Hoenlein, the executive vice-chairman of the Conference of Presidents of Major American Jewish Organizations. “I hope that won’t be impacted.”

Murdoch’s huge stable encompasses broadsheets such as The Wall Street Journal, the Times of London and The Australian, as well as tabloids, most notably The Sun in Britain and the New York Post. It also includes the influential Fox News Channel in the United States and a 39 percent stake in British Sky Broadcasting, or BSkyB, a satellite broadcaster. Murdoch founded the neoconservative flagship The Weekly Standard in 1995, and sold it last year.

Jewish leaders said that Murdoch’s view of Israel’s dealings with the Palestinians and with its Arab neighbors seemed both knowledgeable and sensitive to the Jewish state’s self-perception as beleaguered and isolated.

“My own perspective is simple: We live in a world where there is an ongoing war against the Jews,” Murdoch said last October at an Anti-Defamation League dinner in his honor. “When Americans think of anti-Semitism, we tend to think of the vulgar caricatures and attacks of the first part of the 20th century. Now it seems that the most virulent strains come from the left. Often this new anti-Semitism dresses itself up as legitimate disagreement with Israel.”

Murdoch, 80, has visited Israel multiple times and met with many of its leaders. In 2009 he was honored by the American Jewish Committee.

“In the West, we are used to thinking that Israel cannot survive without the help of Europe and the United States,” he said at the AJC event. “Tonight I say to you, maybe we should start wondering whether we in Europe and the United States can survive if we allow the terrorists to succeed in Israel. “

Leaders of a number of pro-Israel groups declined to comment for this story because of Murdoch’s current difficulties.

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News International ‘deliberately’ blocked criminal investigation

The Guardian reports:

Rupert Murdoch’s News International has been found by a parliamentary committee to have “deliberately” tried to block a Scotland Yard criminal investigation into phone hacking at the News of the World, the Guardian has learned.

The report by MPs from the all-party home affairs committee will be released on Wednesday and its publication has been moved forward in time for today’s statement by prime minister David Cameron on the scandal.

The report’s central finding comes a day after Rupert and James Murdoch testified before the culture, media and sport committee.

The home affairs committee report marks an official damning judgment on News International’s actions.

It finds the company deliberately tried to “thwart” the 2005-6 Metropolitan police investigation into phone hacking carried out by the News of the World.

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Phone hacking: These resignation statements are meaningless

Gary Younge writes:

“Action,” argued philosopher Hannah Arendt, “without a name attached to it is meaningless.” It leaves you with objects without subjects and consequences without causes.

So it is with the resignations that have emerged from the phone-hacking scandal so far. Time and again people with huge salaries and immense power acknowledge they had responsibility, but are careful not to concede accountability, for fear that it will suggest culpability. Nobody claims they were just following orders because apparently there were no orders and no one to give them. It appears what we assumed were extremely hierarchical organisations such as News International and the Metropolitan police apparently operated like anarchist collectives.

So with each new revelation – and not before – those who resign concede that “apparently” something terrible was done on their watch but insist that they knew nothing about it nor did anything related to it. They left not because of any wrongdoing but because the wrongs were being done to them – wait for it – by a hostile media. Then they make a break for it to spend more time with their lawyers.

Rebekah Brooks, former News of the World editor and chief executive of News International, said she left because she was feared her presence was “detracting attention from all [her] honest endeavours to fix the problems of the past”.

Andy Coulson, former News of the World editor and prime-ministerial spokesman, said “when the spokesman needs a spokesman, it’s time to move on”.

John Yates, the senior police officer who took just a few hours to dismiss Guardian allegations that the original hacking investigation had been bungled, framed his resignation not as a matter of public disgrace but public service: “This has the potential to be a significant distraction in my current role as the national lead for counter-terrorism. I was unable to give total commitment to the task of protecting London and the country during this period.”

So we have a narrative with no protagonists. Ignorance is claimed lest malfeasance be inferred; a verdict of incompetence is invited in preference to incrimination.

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Bret Stephens’ and News Corp’s hacking bullshit

News Corp condemns hacking. That seems to be the corporate PR directive that has landed on the desk of every one of Rupert Murdoch’s minions in their ongoing effort to save him and themselves.

The latest example of this strategy of damage control comes from Wall Street Journal columnist Bret Stephens under the headline: “News of the World vs. WikiLeaks.”

How does this year’s phone hacking scandal at the now-defunct British tabloid News of the World—owned, I hardly need add, by News Corp., the Journal‘s parent company—compare with last year’s contretemps over the release of classified information by Julian Assange’s WikiLeaks and his partners at the New York Times, the Guardian and other newspapers?

At bottom, they’re largely the same story.

In both cases, secret information, initially obtained by illegal means, was disseminated publicly by news organizations that believed the value of the information superseded the letter of the law, as well as the personal interests of those whom it would most directly affect. In both cases, fundamental questions about the lengths to which a news organization should go in pursuit of a scoop have been raised. In both cases, a dreadful human toll has been exacted: The British parents of murdered 13-year-old Milly Dowler, led to the false hope that their child might be alive because some of her voice mails were deleted after her abduction; Afghan citizens, fearful of Taliban reprisals after being exposed by WikiLeaks as U.S. informants.

Both, in short, are despicable instances of journalistic malpractice, for which some kind of price ought to be paid. So why is one a scandal, replete with arrests, resignations and parliamentary inquests, while the other is merely a controversy, with Mr. Assange’s name mooted in some quarters for a Nobel Peace Prize?

Scandal: “A publicized incident that brings about disgrace or offends the moral sensibilities of society.”

We all know why Bret Stephen’s News Corp paymasters have been hauled in front of a parliamentary committee today to answer questions on the News of the World phone hacking scandal. But the Wikileaks scandal?

The treatment of Bradley Manning is certainly a scandal — but not one that has garnered a great deal of attention in the mainstream media. But Wikileaks efforts to promote transparency in government are neither a scandal, nor indeed do they involve hacking. There is no evidence that either Wikileaks or newspapers publishing documents provided by Wikileaks, broke the law.

The real difference between the Wikileaks story and the exposure of business practices employed by News Corp is the difference between public interest and self interest. For Rupert Murdoch’s empire, as ideological driven as some of its components might seem to be, is ultimately an enterprise with a very simple agenda.

The populism that unites News of the World and Fox News is one in which news entertainers exploit the commercial value of popular sentiment in whatever way can grab the largest market share. Sure, they have a broadly conservative agenda, but their philosophy and business practices boil down to this: they’re only in it for the money.

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Standard & Poor’s warns of possible News Corp. downgrade

The Los Angeles Times reports:

With fallout from the News of the World phone hacking scandal far from contained, corporate ratings firm Standard & Poor’s on Monday said that it was putting Rupert Murdoch’s News Corp. on its “CreditWatch” list, which could result in a possible credit downgrade.

The move would be costly for a company that has already seen $8 billion in market value evaporate during the two weeks since the scandal first blew up.

News Corp. shares tumbled further Monday, closing at $14.97 a share. That is a 17% decline since July 5 when the scandal began to mushroom.

Losing its BBB+ credit rating would result in higher borrowing costs for News Corp.

Standard & Poor’s attributed its action Monday to “the increased business and reputation risks associated with broadening legal inquiries” and investigations, including one by the FBI, into possible criminal behavior by News Corp. journalists and executives.

“In our opinion this and other recent developments materially increase the reputational, management, litigation, and other risks currently faced by News Corp. and its subsidiaries,” Standard & Poor’s credit analyst Michael Altberg said in his company’s release.

The ratings firm also pointed to a “weakening of the company’s executive bench strength.”

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The Sun and News International sites hacked, Lulzsec claims responsibility

TechCrunch reports:

The web site of The Sun newspaper, part of News International which has been embroiled in the phone hacking scandal in the UK, has been hacked, apparently by hacker group Lulzsec, which tweeted “@LulzSec: We have owned Sun/News of the World – that story is simply phase 1 – expect the lulz to flow”.

The hack is a redirect to “http://www.new-times.co.uk/sun/” and contains a (clearly false) story about Rupert Murdoch being found dead. Ironically the domain ‘new-times.co.uk’ is registered to one News International Newspapers Limited.

The ‘story’ begins:

Rupert Murdoch, the controversial media mogul, has reportedly been found dead in his garden, police announce. Murdoch, aged 80, has said to have ingested a large quantity of palladium before stumbling into his famous topiary garden late last night, passing out in the early hours of the morning.”

No doubt this is in reference to the tragic news tonight that a pivotal informer in the phone hacking scandal, Sean Hoare, was tonight found dead in his apartment, though Police are reporting the circumstances as ‘not suspicious’.

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News of the World phone-hacking whistleblower found dead

The Guardian reports:

Sean Hoare, the former News of the World showbiz reporter who was the first named journalist to allege Andy Coulson was aware of phone hacking by his staff, has been found dead, the Guardian has learned.

Hoare, who worked on the Sun and the News of the World with Coulson before being dismissed for drink and drugs problems, is said to have been found dead at his Watford home.

Hertfordshire police would not confirm his identity, but the force said in a statement: “At 10.40am today [Monday 18 July] police were called to Langley Road, Watford, following the concerns for the welfare of a man who lives at an address on the street. Upon police and ambulance arrival at a property, the body of a man was found. The man was pronounced dead at the scene shortly after.

“The death is currently being treated as unexplained, but not thought to be suspicious. Police investigations into this incident are ongoing.”

It looks like the grounds for lack of suspicion might be buried close to the end of this article. When speaking to a Guardian journalist last week, Hoare said “he had been injured the previous weekend while taking down a marquee erected for a children’s party. He said he had broken his nose and badly injured his foot when a relative accidentally struck him with a heavy pole from the marquee.”

Nick Davies writes:

At a time when the reputation of News of the World journalists is at rock bottom, it needs to be said that the paper’s former showbusiness correspondent Sean Hoare, who died on Monday, was a lovely man.

In the saga of the phone-hacking scandal, he distinguished himself by being the first former NoW journalist to come out on the record, telling the New York Times last year that his former friend and editor, Andy Coulson, had actively encouraged him to hack into voicemail.

That took courage. But he had a particularly powerful motive for speaking. He knew how destructive the News of the World could be, not just for the targets of its exposés, but also for the ordinary journalists who worked there, who got caught up in its remorseless drive for headlines.

Explaining why he had spoken out, he told me: “I want to right a wrong, lift the lid on it, the whole culture. I know, we all know, that the hacking and other stuff is endemic. Because there is so much intimidation. In the newsroom, you have people being fired, breaking down in tears, hitting the bottle.”

He knew this very well, because he was himself a victim of the News of the World. As a showbusiness reporter, he had lived what he was happy to call a privileged life. But the reality had ruined his physical health: “I was paid to go out and take drugs with rock stars – get drunk with them, take pills with them, take cocaine with them. It was so competitive. You are going to go beyond the call of duty. You are going to do things that no sane man would do. You’re in a machine.”

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News Corp has already lost $6 billion because of phone hacking scandal

Bloomberg reports:

News Corp. (NWSA)’s Rupert Murdoch is struggling to control the destiny of the company he began building six decades ago after a trusted deputy was arrested and Scotland Yard’s top official quit over ties to a suspect in the phone-hacking probe.

Independent directors of New York-based News Corp. have begun questioning the company’s response to the crisis and whether a leadership change is needed, said two people with direct knowledge of the situation who wouldn’t speak publicly. Rebekah Brooks, the former News International chief who Murdoch backed until last week, was arrested yesterday in London.

“The shell of invulnerability that Rupert Murdoch had around him has been cracked,” said James Post, a professor at Boston University’s School of Management who has written about governance and business ethics. “His credibility and the company’s credibility are hemorrhaging.”

Murdoch and his 38-year-old son, James Murdoch, are spending most of their time with advisers preparing for tomorrow’s hearing before a U.K. parliamentary committee. They will face questions over their role in and responsibility for phone hacking that took place at their now-defunct News of the World tabloid. The company took out advertisements in national U.K. newspapers this weekend to apologize for the scandal.

News Corp. (NWS) fell 66 cents, or 4.2 percent, to $14.98 on the Nasdaq Stock Market at 11:18 a.m. New York time. Before today, it had lost 13 percent since July 4, when the Guardian reported that News of the World employees had intercepted the voice mail of Milly Dowler, a schoolgirl who was later found murdered. The tabloid is also alleged to have hacked into the phones of terror victims and dead soldiers, as well as politicians and celebrities.

The slump has shaved more than $6 billion off the combined value of the Class A shares and the Class B voting stock that gives the Murdochs control over the company.

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How Murdoch tries to buy his way out of trouble

David Carr writes:

“Bury your mistakes,” Rupert Murdoch is fond of saying. But some mistakes don’t stay buried, no matter how much money you throw at them.

Time and again in the United States and elsewhere, Mr. Murdoch’s News Corporation has used blunt force spending to skate past judgment, agreeing to payments to settle legal cases and, undoubtedly more important, silence its critics. In the case of News America Marketing, its obscure but profitable in-store and newspaper insert marketing business, the News Corporation has paid out about $655 million to make embarrassing charges of corporate espionage and anticompetitive behavior go away.
[…]
In 2006 the state of Minnesota accused News America of engaging in unfair trade practices, and the company settled by agreeing to pay costs and not to falsely disparage its competitors.

In 2009, a federal case in New Jersey brought by a company called Floorgraphics went to trial, accusing News America of, wait for it, hacking its way into Floorgraphics’s password protected computer system.

The complaint summed up the ethos of News America nicely, saying it had “illegally accessed plaintiff’s computer system and obtained proprietary information” and “disseminated false, misleading and malicious information about the plaintiff.”

The complaint stated that the breach was traced to an I.P. address registered to News America and that after the break-in, Floorgraphics lost contracts from Safeway, Winn-Dixie and Piggly Wiggly.

Much of the lawsuit was based on the testimony of Robert Emmel, a former News America executive who had become a whistle-blower. After a few days of testimony, the News Corporation had heard enough. It settled with Floorgraphics for $29.5 million and then, days later, bought it, even though it reportedly had sales of less than $1 million.

But the problems continued, and keeping a lid on News America turned out to be a busy and expensive exercise. At the beginning of this year, it paid out $125 million to Insignia Systems to settle allegations of anticompetitive behavior and violations of antitrust laws. And in the most costly payout, it spent half a billion dollars in 2010 on another settlement, just days before the case was scheduled to go to trial. The plaintiff, Valassis Communications, had already won a $300 million verdict in Michigan, but dropped the lawsuit in exchange for $500 million and an agreement to cooperate on certain ventures going forward.

The News Corporation is a very large, well-capitalized company, but that single payout to Valassis represented one-fifth of the company’s net income in 2010 and matched the earnings of the entire newspaper and information division that News America was a part of.

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Cameron rushes home to save his job

The New York Times reports:

The phone hacking scandal in Britain claimed another high-profile casualty on Monday when John Yates, the assistant commissioner of the Metropolitan Police in London, resigned his post. His departure comes a day after the country’s top police officer quit and Rebekah Brooks, the former chief executive of Rupert Murdoch’s News International, was arrested on suspicion of illegally intercepting phone calls and bribing the police.

Such is the severity of the crisis swirling around the Murdoch empire and Britain’s public life that Prime Minister David Cameron cut short an African trip on Monday and, bowing to opposition pressure, called a special parliamentary session on Wednesday to debate the widening scandal.

Mr. Yates is a well-known officer who had been involved in an earlier and inconclusive police review of the scandal. He and other officers have been under scrutiny by lawmakers who are trying to determine why the Metropolitan Police decided in 2009 to strictly limit the initial phone-hacking inquiry, dating to 2006.

Shortly after the Metropolitan Police announced his resignation, Mr. Yates made a defiant public statement: “I have acted with complete integrity,” he said. “My conscience is clear.”

Kiran Stacey notes that the resignation of Met Commisioner, Sir Paul Stephenson, puts the British prime minister in an even tighter corner. If Stephenson had to resign for appointing Neil Wallis, shouldn’t Cameron resign for appointing Andy Coulson?

Sir Paul Stephenson’s resignation yesterday was a significant moment in the phone hacking affair: not only because of the fact of his resigning but because of what he said afterwards.

He made two subtle but important criticisms of the prime minister:

1) He said he had resigned in part for having employed Neil Wallis, the former deputy editor of the News of the World, who has since been arrested, but did not have to resign from the NotW for his part in the scandal. He compared this to Andy Coulson, who had been forced to resign, but was also given subsequent employment – by the prime minister.

2) Sir Paul also said he did not want to “compromise the prime minister” by telling him about Wallis’ involvement either with the Met or the fact that he was a suspect in the hacking affair, given Cameron’s “close relationship with Mr Coulson”. This came close to, without doing so directly, saying that Cameron could not have been trusted with such information, and may have jeopardised the operation (or at least been accused of jeopardising it) by telling Coulson. It’s an extraordinary claim, which [Labour MP and shadow Home Secretary] Yvette Cooper was quick to highlight…

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Rupert Murdoch has gamed American politics every bit as thoroughly as Britain’s

John Nichols writes:

Australian-born billionaire Rupert Murdoch has manipulated not just the news but the news landscape of the United States for decades. He has done so by pressuring the Federal Communications Commission and Congress to alter the laws of the land and regulatory standards in order to give his media conglomerate an unfair advantage in “competition” with more locally focused, more engaged and more responsible media.

It’s an old story: while Murdoch’s Fox News hosts prattle on and on about their enthusiasm for the free market, they work for a firm that seeks to game the system so Murdoch’s “properties” are best positioned to monopolize the discourse.

Now, with Murdoch’s News Corp. empire in crisis—collapsing bit by bit under the weight of a steady stream of allegations about illegal phone hacking and influence peddling in Britain—there is an odd disconnect occurring in much of the major media of the United States. While there is some acknowledgement that Murdoch has interests in the United States (including not just his Fox News channel but the Wall Street Journal and the New York Post), the suggestion is that Murdoch was more manipulative, more influential, more controlling in Britain than here.

But that’s a fantasy. Just as Murdoch has had far too much control over politics and politicians in Britain during periods of conservative dominance—be it under an actual Tory such as former Prime Ministers Margaret Thatcher and John Major and current Prime Minister David Cameron or under a faux Tory such as former Prime Minister Tony Blair—he has had far too much control in the States. And that control, while ideological to some extent, is focused mainly on improving the bottom line for his media properties by securing for them unfair legal and regulatory advantages.

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Scotland Yard chief quits over hacking scandal

BBC News reports:

Metropolitan Police Commissioner Sir Paul Stephenson has resigned following the phone hacking scandal.

Britain’s most senior police officer has faced criticism for hiring former News of the World executive Neil Wallis – who was questioned by police investigating hacking – as an adviser.

Sir Paul said his links to the journalist could hamper investigations.

He said there were lessons to be learned from the affair, but he was leaving with his integrity intact.

The Guardian reports:

Sir Paul Stephenson, the Metropolitan police commissioner, had social drinks on up to four occasions over the past two years with the former News of the World deputy editor who was arrested and then bailed last week.

Stephenson already faces a grilling this week by a parliamentary select committee over his recruitment of Neil Wallis as a public relations consultant last year. Wallis, known as “Wolfman” on Fleet Street because of his fiery temper and his beard, worked at the NoW between 2003 and 2009, a period when the phone hacking by reporters on the newspaper is alleged to have taken place.

Now it has emerged that on top of 18 business meals he took with Wallis and other News International executives between 2005 and 2009, which were acknowledged on the gifts and hospitality register, the commissioner also socialised in his own time with the former tabloid journalist.

The development is of particular concern because it is understood that Stephenson accepted a personal assurance from Wallis that he had nothing to do with phone hacking at the paper.

It is also understood that during a 12-year friendship, the Met’s assistant commissioner, John Yates, enjoyed dozens of social drinks with Wallis, including several occasions over the past two years when the officer was involved in reviewing the phone-hacking investigation. A source said: “They are close friends and know each other well.”

The revelations will concern the home affairs select committee, which has called Stephenson to attend a hearing on Tuesday. Scotland Yard was forced to respond to further allegations which may now also be raised during the hearing.

On Saturday night, it emerged that earlier this year Stephenson, who earns £276,000 a year, accepted a free five-week holiday at Champneys, in Tring, Hertfordshire, a spa resort promoted by the Outside Organisation, a public relations firm for which Wallis is managing director.

Scotland Yard insisted that the holiday, estimated to be worth £12,000, was a gift from the managing director of the resort, who has been a friend of Stephenson’s for 20 years.

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