News Corp. Tabloid Scandal Clouds $13B BSkyB Deal

Law360, New York (July 7, 2011, 3:01 PM EDT) -- The phone hacking scandal in the U.K. that led News Corp. on Thursday to announce the closure of the blockbuster tabloid responsible is also clouding the media empire’s planned $13 billion acquisition of British Sky Broadcasting PLC.

Ofcom, the UK’s telecommunications watchdog, raised the possibility Wednesday of nixing News Corp.’s broadcasting license, adding a regulatory voice to outcries from legislators appalled by allegations that News of the World hacked into the cellphones of dead soldiers and a 13-year old murder victim.

“In the light of the...
To view the full article, register now.