Murdoch stands by Brooks

Released by News Corporation this afternoon:

“Statement from Rupert Murdoch, Chairman and Chief Executive Officer, News CorporationLondon, 6 July, 2011 – Recent allegations of phone hacking and making payments to police with respect to the News of the World are deplorable and unacceptable. I have made clear that our company must fully and proactively cooperate with the police in all investigations and that is exactly what News International has been doing and will continue to do under Rebekah Brooks’ leadership. We are committed to addressing these issues fully and have taken a number of important steps to prevent them from happening again. I have also appointed Joel Klein to provide important oversight and guidance and Joel and Viet Dinh, an Independent Director, are keeping News Corporation’s Board fully advised as well.”

Elsewhere, though, the phone hacking saga is beginning to affect News Corp’s business performance. Several leading advertisers have cut and run from the News of the World. And, as we report on the Spectator’s new business blog, shares in BSkyB fell today having held firm so far this week, following speculation that the Murdoch’s proposed takeover might be delayed, to which Zac Goldsmith has just added by saying that the “unanimous view” is that should be a “pause” before the deal proceeds.