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Rupert Murdoch is standing by News International head Rebekah Brooks in his first public statement on the new phone hacking accusations causing a firestorm for the News Corp (NSDQ: NWS). UK publishing group — and a potential last-minute roadblock for his much-desired BSkyB (NYSE: BSY) takeover. The statement, included in full below, comes from London but the News Corp Chairman and CEO is Sun Valley, Idaho, at the annual Allen & Co. mogul fest. Also in Sun Valley, Joel Kelin, the former New York City Schools chancellor now heading News Corp.’s fledgling education business — and serving as Murdoch’s point man on the News of the World scandal.
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.
Klein, a board member, knows his way around tough legal situations. He is a former assistant attorney general and was Deputy White House Counsel to President Bill Clinton.