(Image Source: CCD)

You're watching multisource business news analysis from Newsy.

BY: TRACY PFEIFFER


British tabloid News of the World has officially shut down.
But for parent company NewsCorp - and head honcho Rupert Murdoch - the tabloid’s phone-hacking scandal is still causing problems.
It’s a broiling battle that has the Sydney Morning Herald headlining their coverage--

“Murdoch’s sky falling in.”

British officials are still looking into various allegations surrounding the scandal -- and reports say even the U.S. Justice Department is getting into the mix after allegations NoW paid some £100,000 to police officers.

Now -- the backlash threatens an £8 billion deal a year in the making.

“The police investigation is threatening to derail a more lucrative prospect - NewsCorp’s takeover of Britain’s biggest pay-TV boradcaster.”

"NewsCorp wants to take over the 61 percent of BSkyB it doesn’t already own. This would give it full access to the broadcaster’s revenue -- currently over a quarter of NewsCorp’s.”

And it isn’t just the court of public opinion encouraging Murdoch to cancel the deal. Here’s The Washingtion Post.

“The opposition Labor Party said on Sunday that it would present a motion in Parliament to prevent the takeover. Such a move could thwart News Corp.’s plans to consolidate its position as the dominant voice of conservative Britain by adding a highly profitable and politically influential asset to its portfolio.”

And the Guardian reports -- Deputy Prime Minister Nick Clegg held a press conference on the issue, asking Murdoch to quote- “do the decent thing” by putting off the merger until the police investigation is over.

But Murdoch isn’t done yet -- that’s according to the BBC, who reports NewsCorp’s bid got kicked to regulators on Monday. A commission will review the potential merger for plurality issues.
Business Editor Robert Preston explains -- that’s actually great news for Murdoch.

ROBERT PRESTON, BBC BUSINESS EDITOR: “It keeps the bid alive, it doesn’t kill the bid. Therefore they save face, but also this big prize that they want - British Sky Broadcasting, with its £6 billion a year revenues, it’s a billion a year of profits - it’s still something that they obviously still believe they’ve got a chance of getting. But they’re conceding, they’re not gonna get it for at least a year.”

Finally, the Sydney Morning Herald reports -- despite recent events, Murdoch himself seemed unfazed in recent appearances.

“Staring it all down with an appearance of good cheer, Rupert Murdoch beamed for television cameras and again backed his controversial News International chief and former News of the World editor Rebekah Brooks... Asked what his priority was, he smiled, gestured to Mrs Brooks and said: ‘This one.’”
 

'Like' Newsy on Facebook for updates in your news feed.

Get more multisource video news analysis from Newsy.

Transcript by Newsy.