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News Corp.'s U.K. Tabloid Fesses Up To Phone Hacking

Reported by Ellen - April 9, 2011 -

Just a few days after two reporters from one of Murdoch's British tabloids were arrested for hacking into phones of celebrities, politicians and members of the royal family, the publisher has "reversed course" and admitted wrongdoing.

MSNBC.com reported:

Admission of liability for hacking the phones of eight people — including actress Sienna Miller and politician Tessa Jowell — and agreement to pay compensation amounts to a major turnaround for the company, part of Murdoch's global media empire News Corp.

Analysts said the move was an attempt to draw a line under the case and limit potential financial costs as News Corp tries to push ahead with its planned purchase of BSkyB, a deal that has angered other British news operators who fear the group's growing influence over Britain's media

Will this staunch the damage that has already spread outside of News Corp and cost Prime Minister David Cameron's head of communicationshis job ? Stay tuned.

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