Murdoch Wages Counter-offensive
The sun was shining in London over the weekend, something that News Corp chairman Rupert Murdoch took note of in one of his posts on Twitter on the same day that he announced that another Sun will be dawning in the U.K. next week. Called The Sun on Sunday , the newspaper will replace the News of the World , which Murdoch shut down last year amid revelations that reporters routinely hacked into the voicemail accounts of celebrities, politicians, and crime victims. Already dubbed the SoS, the new newspaper is seen as Murdoch's effort to rescue his News International unit from the scourge of devastating news reports and police and parliamentary investigations concerning the ethics and legality of its reporters' practices. A week ago five senior journalists at The Sun were arrested in connection with a Scotland Yard investigation into whether police and other public officials were bribed by reporters for information. That brought to ten the number of Sun reporters who have been arrested during the ongoing probe. Murdoch has announced that he is lifting their suspensions, and presumably some of them may wind up contributing to the new Sunday tabloid. Murdoch himself took to Twitter on Sunday to observe, "Just for the record Newscorp shares up 60c on news of Sun on Sunday. Highest for year." But some News Corp investors are skeptical. "The problem is spreading. They've not isolated it as they thought they had," Anne Sheehan head of corporate governance at California State Teachers' Retirement System, which owns over 6 million shares in News Corp, told the London Daily Telegraph.