Rupert Murdoch has always been both popular and disliked, even reviled, in Britain. He was, and remains, popular in the sense that many millions read his newspapers and watch his TV channels, making him the country's most successful publisher and broadcaster.
Some of those same millions dislike him because they feel he exerts too much control over the media and has cheapened his newspapers, turning his tabloids into shock, sex and scandal sheets. The sentiments have been widely held for many years. The English dramatist Dennis Potter, creator of the TV drama The Singing Detective, was passionate in his belief that Mr. Murdoch had contaminated the British media. In his last TV interview, in 1994, he famously referred to the pancreatic cancer that would kill him as "Rupert."
This week, reviling Mr. Murdoch and his media empire turned into a national obsession as the phone-hacking scandal that has enveloped his News of the World tabloid like a dirty sheet for years turned truly ugly. On Wednesday, British Prime Minister David Cameron, bowing to Opposition and public pressure, conceded that an independent public inquiry into the scandal was needed. "It's absolutely disgusting what has taken place," he said during Question Period in Parliament.
He was referring to revelations reported by The Guardian that Mr. Murdoch's News of the World tapped into the voice-mails of murder victims and their families, and also paid police officers for stories. In one case, the tabloid is alleged to have intercepted the voice messages of Milly Dowler, the teenager who disappeared in March, 2002, and was found dead six months later. Some of the messages were apparently deleted and the phone activity may have given Ms. Dowler's parents the false hope that their daughter was alive.
News of the World and Mr. Murdoch's company, News Corp., have already suffered enormous damage to their reputations, all the more so since the newspaper spent years dragging its feet during previous investigations into the use of illegal phone intercepts by its journalists (one of whom went to jail).
The scandal comes at a particularly sensitive time for Mr. Murdoch. His British papers are losing readers and many prominent advertisers, including Ford, Vauxhall and Virgin Holidays, are yanking ads from News of the World as the phone-hacking scandal turns explosive. The paper's circulation, last reported at about 2.7 million, is in rapid decline. The next figure is bound to be worse, leading to speculation that News Corp. might consider banishing the tarnished property from its empire.
The papers are only a minor part of News Corp.'s vast holdings. Television is Mr. Murdoch's big show and he wants more of it. To that end, News Corp. is trying to buy the 61 per cent of British satellite broadcaster BSkyB that it does not already own. BSkyB shares fell more than 2 per cent on Wednesday, to £8.27 ($12.78), valuing the company at £14.8-billion, on speculation that the bid will be delayed until the inquiry into the phone-hacking scandal is completed.
But there could be a worse outcome for Mr. Murdoch. As disgust with News of the World builds, the government is coming under renewed pressure to refer the bid to the Competition Commission. That's where Labour leader David Miliband said it should go, in full knowledge that a review could seriously delay, possibly even kill, the takeover attempt.
Others Opposition members hope that Ofcom, the media regulator, will take another look at the deal even though it has already told Culture Secretary Jeremy Hunt that it is satisfied the proposed purchase of BSkyB would not harm media plurality in Britain.
Still, Ofcom made it clear on Wednesday that it still has the power to make Mr. Murdoch's life miserable. In a statement, the regulator said: "In light of the current public debate about phone hacking and other allegations, Ofcom confirms that it has a duty to be satisfied on an ongoing basis that the holder of a broadcasting licence is 'fit and proper.' We are closely monitoring the situation and in particular the investigations by the relevant authorities into the alleged unlawful activities."
Mr. Murdoch has been waiting for his prize a long time. More than a year ago, his son James, who is BSkyB's chairman and News Corp.'s top executive in Europe, led a proposal that would have seen News Corp. buy the rest of the satellite broadcaster for £7 a share. The independent directors rejected the offer and the two sides agreed that no new offer would be pitched until British and European Union regulators reviewed the takeover proposal.
The British competition authorities never got formally involved and Mr. Hunt said in March that he probably would approve the deal if BSkyB were to spin off its news unit. The minister was expected to give his final approval as early as next week.
On Wednesday afternoon, it appeared that Mr. Murdoch suddenly realized he had a lot to lose. He called the phone hacking by the paper he controls "disgusting" and promised that News Corp. would co-operate with any investigations.
Mr. Hunt should delay his BSkyB approvals until the probes are complete. The full story of the scandal needs to come out and the truth may be highly unpleasant for Mr. Murdoch and his officers and editors. News Corp.'s papers revel in digging up scandals; it now has the obligation to come clean on its own before it is given more financial liberties in Britain.
Eric Reguly