News Corporation in Hot Water over Hacking of Murdered Teen's Phone

Rupert Murdoch's News Corporation NWS NWSA is at the center of a scandal that has engulfed the United Kingdom and threatens to derail the company's attempt to acquire British Sky Broadcasting Group, also known as BSkyB. News Corporation is under fire because of allegations that its News of the World publication was involved in the hacking of a missing thirteen year old girl's voicemail and interfering with the police investigation into her disappearance. The allegation is that a private investigator working for the News of the World hacked into the voicemail of thirteen year old Milly Dowler's mobile phone after she went missing in 2002. To make matters worse, messages on the phone are said to have been deleted in order to make room for more messages so that the newspaper would have more fodder for its pages. This is a serious allegation because the missing girl had already been killed but the deletion of the voice mails led her parents and police to believe that she may still have been alive and thus interfered with how the police carried out their investigation. The scandal has already cost the newspaper one major advertiser, as Ford Motor Company F decided it was in the company's best interests to cut ties with the paper. Considering the public outcry, it wouldn't be a surprise if other advertisers soon followed suit. Important advertisers such as Tesco, Renault and Virgin Media are said to be waiting to find out more details before deciding whether or not they will continue to advertise in the News Corporation publication. Rebekah Brooks is the chief executive of News Corporation subsidiary News International, the parent company of News of the World, and is coordinating the company's efforts with police who are looking into the matter. However, she also happens to the editor of the News of the World when the alleged phone hacking took place, so many are questioning if she knew of or even authorized phone hacking while she led the paper. Prime Minister David Cameron said that he was shocked by the allegations and is facing calls from opposition leader leader Ed Miliband, among others, to start a public inquiry into the matter. The unfolding scandal couldn't possibly come at a worse time for Rupert Murdoch's News Corporation, which was set to gain approval this week for its plan to buy BSkyB. The deal is in jeopardy because of the firestorm surrounding the phone hacking allegations and approval may be delayed or even rejected because of the growing scandal centering on News Corporation's News of the World newspaper.