Rupert Murdoch has destroyed a once-great newspaper to save an empire, writes MARK HENNESSY, London Editor
A JUNGLE'S big beast must never show fear, if it is to remain unchallenged. By deciding to close the News of the World, Rupert Murdoch yesterday showed fear, but also breathtaking cynicism.
However, he is far from out.
Telephone hacking was, it is now known, a relatively common occurrence among tabloid British journalists – not just the News of the World– for about a decade up to a couple of years ago. Hundreds of exclusives were garnered.
However, the News of the World– known in the trade as "The Screws", became the focus after its royal correspondent, Clive Goodman, and private detective Glenn Mulcaire were prosecuted and in 2007 jailed.
From the off, the rest of the press were happy to ignore it until it emerged that the paper had hacked the mobile of murdered teenager Milly Dowler. From there, the paper went into free- fall, losing advertisers by the score and fears that circulation would plummet.
Murdoch yesterday approved its closure, not without some emotion, perhaps, given that his purchase of it in 1969 marked the arrival of the Australian underdog onto the British stage. However, Murdoch is nothing if not ruthless.
However, the proposal is more likely to have come from his son, James, the chairman of News International, who has never had the newspaperman’s love of ink held by his father and one who has long wanted the company to push for TV and internet earnings.
Undoubtedly, the News of the Worldis past its best. In the 1950s, it sold nearly 9 million copies. So far this year it has averaged 2.6 million – down 10 per cent on the year. Yet, it still made nearly £40 million profits, propping up the loss-making London Timesin News International's stable.
However, the full takeover of BSkyB is far too important for the Murdoch-controlled News Corp. The satellite broadcaster’s expected future earnings from British and Irish subscribers will mean that it will be a valuable cash-cow for years to come.
Advertisers had quit the News of the Worldby the score, leading the newspaper to announce that it would publish an advertisement- free edition on Sunday just hours before James Murdoch announced that the edition would be the last in its 168-year history.
News International will not stay out of the Sunday "red-top" tabloid market for long. It is too valuable to be left to the Sunday Mirrorand other minor players.
Indeed, Rebekah Brooks, News International's chief executive, despite everything, has wanted to merge its newsroom with the Sunfor some time.
Two days ago, the domain name for thesunonSunday.co.uk was registered by persons unknown. If done by a private individual it will be an act that will make significant money; if done by News International, it will be the final evidence needed for a charge of cold-bloodedness.
Despite everything, Rupert Murdoch stands by Brooks, the woman he regards almost as a daughter, while his son, James, last night said that her ethical standards both as editor of the News of the Worldand later were "very good".
In the hours before the closure decision, No 10 Downing Street desperately struggled to figure out what to do, preferring to concentrate on the inquiry to come that will look into the Metropolitan Police’s handling of the investigation.
David Cameron has difficulties. He was warned not to bring Andy Coulson – who led the News of the Worldafter Brooks until he resigned after Goodman and Mulcaire's jailing – with him to Downing Street.
Nick Clegg was equally warned. However, Cameron chose to ignore it.
George Osborne had brought him into the Conservative team in 2007 as the party struggled to cope with Gordon Brown’s golden early months in power.
Cameron’s team struggled to understand the British working-class. Believing that Coulson, an Essex boy made good, had the magic touch, he was brought to deal with the powerful tabloids. Curiously, he had little to do with them after he arrived, preferring to concentrate on broadcasters.
Cameron’s culture secretary Jeremy Hunt yesterday bought time, postponing a decision on News Corp’s takeover of BSkyB until September, following the closing date for a consultation about, ironically, media plurality. It was the minimum required.
Undoubtedly, Cameron has been diminished by events, but there is a hard political calculation being made, too.
Even without the News of the World, Rupert Murdoch is still a powerful man. Cameron will put distance between them, but he cannot afford to make him his enemy. Not yet, anyway.