News Corp. Phone Hacking Scandal Widens (Again)

News CorpOn the heels of its latest quarterly report showing a doubling profits, News Corp. is still reeling from the fallout from the phone hacking scandal as six former News of the World journalists were arrested on February 13 for allegedly intercepting voice mails. Two of those arrested are still employed at News Corp.

According to a February 13 Bloomberg article:

News Corp.'s phone-hacking scandal is widening after London police arrested six more former journalists at its now-defunct News of the World tabloid and uncovered a new conspiracy to intercept voice mail.

Three men and three women suspected of hacking phone messages in 2005 and 2006 were arrested today and some homes are being searched, the Metropolitan Police Service said in a statement. Two of the people arrested currently work at News Corp.'s other U.K. tabloid, the Sun, Britain's best-selling daily title.


News Corp. has settled about 200 civil phone-hacking lawsuits. It faces as many as 100 more as police continue to notify victims, lawyers said at a London court hearing last week.

At least 55 journalists have been arrested in the last two years in connection with the phone hacking investigation.

These arrests, the latest in a long string of arrests and charges for News Corp. employees, are a reminder that the media conglomerate is far from free of its ethical challenges. According to Bloomberg, lawyer Mark Lewis said, “It comes as no surprise that the lines of investigation are widening ... There is a lot further to go, and ultimately this is a problem that will continue to have reverberations at the top of News Corp.”

The ongoing investigation hasn't stopped CEO Rupert Murdoch from exploring new business ventures or racking up billions in profits. News Corp. reported net profits of $2.4 billion in the last three months of 2012, mostly related to gains from cable TV and new channel acquisitions, effectively doubling its profits from the same period in 2011.

News Corp. has paid more than $340 million in costs related to the phone hacking scandal.

Last year, News Corp. announced plans to split the company into separate publishing and entertainment divisions. On a quarterly earnings call February 6, News Corp. executives said the planned separation was on track “to be completed in approximately one year from the date of announcement.”