Friday, July 15, 2011

FBI Opens Inquiry Into Murdoch's News Corp.

At Los Angeles Times:

The phone hacking scandal that has ignited a political firestorm in Britain jumped the Atlantic on Thursday as the FBI opened an investigation into whether British reporters tried to access cellphone messages and records of victims of the Sept. 11, 2001, terrorist attacks in violation of U.S. law.

The preliminary probe further rattled the New York-based global media empire of Rupert Murdoch, who was forced this week to withdraw his $12-billion bid to take over Britain's largest satellite broadcaster, and raises new questions about the future of News Corp.

U.S. officials said the FBI is trying to determine if a full investigation is warranted, and no evidence has yet emerged to confirm that News Corp. employees sought to hack phones in the United States. But the unfolding scandal sent the company's battered stock down another 3% in trading.

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