News Corp. (NWSA) to Shut Down British Tabloid Following Allegations
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News International, a subsidiary of News Corporation (Nasdaq: NWSA), announced on July 7, 2011 that the following Sunday, July 10th, will be the last issue of the News of the World. News of the World is Britain’s largest selling Sunday paper.
The company is currently in two major ongoing investigations, in which they report that they are fully cooperating in. News International is facing allegations that the company’s journalists have hacked the voicemail of thousands of people, which includes one child who was found murdered to families of British soldiers who died in the Iraq war. News of the World is also suspected of giving police officers over 100,000 pounds for information and new first.
James Murdoch, Deputy Chief Operating Officer, News Corporation, and Chairman commented, “The good things the News of the World does, however, have been sullied by behavior that was wrong. Indeed, if recent allegations are true, it was inhuman and has no place in our Company. The News of the World is in the business of holding others to account. But it failed when it came to itself.”
The July 10th edition will not have any commercial advertising, but instead the company will donate the spaces to causes and charities who wish to expose their information to its readers. The company will also donate all of its proceeds from Sunday’s paper to good causes.
Murdoch stated that he is standing behind Rebekah Brooks who was acting editor of the paper during the period in which some of the gravest new allegations were suspected to take place. Brooks is a regular guest of the prime minister along with other previous Labor leaders in power until last year.
News Corp was given the go ahead by the British government to purchase the remaining 61 percent state in BSkyB that it does not already own, but given the recent allocations things look to be one hold. One British media reported that the deal is now forecast to be sealed in September.
Even in a time when news papers seem to second class to internet news and television, News of the World still sold 2.6 million copies a weak. A News of the World employee who asked not to be named reported, “We didn't expect it at all. We had no indication. The last week has been tough...none of us have done anything wrong. We thought we were going to weather the storm.”
Shares of NWSA are trading up $0.20 or 1.17 percent today to $17.76 following a major selloff yesterday. Shares closed at $18.13 on July 5, 2011 but closed at $17.47 on July 6.
The company is currently in two major ongoing investigations, in which they report that they are fully cooperating in. News International is facing allegations that the company’s journalists have hacked the voicemail of thousands of people, which includes one child who was found murdered to families of British soldiers who died in the Iraq war. News of the World is also suspected of giving police officers over 100,000 pounds for information and new first.
James Murdoch, Deputy Chief Operating Officer, News Corporation, and Chairman commented, “The good things the News of the World does, however, have been sullied by behavior that was wrong. Indeed, if recent allegations are true, it was inhuman and has no place in our Company. The News of the World is in the business of holding others to account. But it failed when it came to itself.”
The July 10th edition will not have any commercial advertising, but instead the company will donate the spaces to causes and charities who wish to expose their information to its readers. The company will also donate all of its proceeds from Sunday’s paper to good causes.
Murdoch stated that he is standing behind Rebekah Brooks who was acting editor of the paper during the period in which some of the gravest new allegations were suspected to take place. Brooks is a regular guest of the prime minister along with other previous Labor leaders in power until last year.
News Corp was given the go ahead by the British government to purchase the remaining 61 percent state in BSkyB that it does not already own, but given the recent allocations things look to be one hold. One British media reported that the deal is now forecast to be sealed in September.
Even in a time when news papers seem to second class to internet news and television, News of the World still sold 2.6 million copies a weak. A News of the World employee who asked not to be named reported, “We didn't expect it at all. We had no indication. The last week has been tough...none of us have done anything wrong. We thought we were going to weather the storm.”
Shares of NWSA are trading up $0.20 or 1.17 percent today to $17.76 following a major selloff yesterday. Shares closed at $18.13 on July 5, 2011 but closed at $17.47 on July 6.
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