News Corp announced it was withdrawing its bid to take full ownership of BSkyB due to the phone hacking scandal at News Corp's UK newspaper group. The decision came just before MPs debated a motion calling on Rupert Murdoch to scrap the bid, which was approved without a vote. As a result, BSkyB's share price briefly dropped 4% before recovering to close 2% up.

Gordon Brown’s speech condemning Rupert Murdoch and his newspapers is seen by some as marking a new era for politics and media. However, the author argues that politicians will always seek favorable coverage from the press, while newspapers crave power and influence. The tension between the two has only worsened over time due to politicians' desire for unmediated communication with the electorate and media organizations' need for legal and regulatory favors to expand their empires. Brown's own attempts to make friends with Murdoch and his lieutenants are highlighted as examples of this perpetual loveless embrace, with no condemnation or promise of virtue being enough to bring about change; instead, transparency in dealings between politicians and the press is necessary for a new era.

Rupert Murdoch has arrived in the UK to face growing pressure to scrap his company's takeover bid for BSkyB due to the phone-hacking crisis. Labour leader Ed Miliband urged him to abandon the bid and sack News International chief Rebekah Brooks. The BBC understands that e-mails found by News International appear to show police were paid for information, and that phone hacking went wider than a single rogue reporter's activities.

Metropolitan Police chief Sir Paul Stephenson has vowed to discipline any officer found to have received "inappropriate" payments from News International. The company's documents, which allegedly show officers were paid tens of thousands of pounds, are being investigated. The allegations of phone hacking and payments to police by News of the World are considered "deplorable" and "unacceptable" by owner Rupert Murdoch.