that has depressed the share price and market value of news corp. it's very likely that there may be somebody other than a murdoch running the company in the future. >> susie: let's talk a little. we were talking to a big institutional shareholder who is very concern body the outlook for this stock. would you buy news corp at $16. is this an opportunity for investors, or is it too risky? >> near term with the $5 billion share buy back that mr. murdoch announced tuesday that begins on august 5th, i think near term, it's probably a buy at news corp, but long term, you have to wait until the dust settles. there's too much uncertainty, and potential liability that the company and senior managers are facing. that want to invest long term. >> susie: there was an article in "newsweek" written by carl bernstein under the title, murdoch's watergate and saying that this is the beginning of the end of the murdoch empire. your thoughts on that. could that be the case? >> i don't think the empire is going to crumble any time soon. but what i think we are seing i

how did they know it was news corp? our investigation traced the unauthorized access to a computer with an ip address registered at the time to news america. was rupert murdoch's news corp. guilty of hacking into a competitor's computer system and then stealing all of their sensitive material? don't know. after a few days of testimony in the trial, news corp. settled the case out of court reportedly for about $29 million. shortly after settling, news corp. then bought the company it accused of hacking. little fish meet big fish, chomp. about 12 hours from right now, rupert murdoch and his son james murdoch will be testifying about the phone hacking scandal that's now threatening to take down at least some of the murdoch media empire ahead of what is expected to be must-see tv here on msnbc naturally, news corp. provided a statement to nbc news that reads in part "we reject the notion that the issues at news international are somehow indicative of our culture." this is an isolated incident, this is not we at news corp. do

is now owned by news corp or news corp and it is is not going to give shareholders in news corp a real the real story on on this and what it could mean to their to their bottom line and that's that's a real problem you don't get real news when when so much power is concentrated it will be you want to jump in there go ahead i just want to take you see you with the optimistic note kevin struck imagining. this the fallout from the scandal would ultimately be good for democracy my worry is that if the fallout from this scandal he's a regular of the press and much more rigorous in false meant that the existing rules as they affect the press is that you'll end up with a very regulated print media which will then be unable to. it's would be completely unregulated internet media and i'm not sure that if people become less reliant on the print media even on television news and more reliance on what they're doing from the internet that that would be good for democracy can anyone reply that that's an interesting point well of course where we're actually seeing much less reliance on the print medi

." >>> the news corp. boss and his son were defined as they said they had no knowledge of wrongdoing, but our shareholders happy? >> the admission from rupert murdoch that he knew little or nothing about what was happening in certain parts of his business empire does not encourage confidence. >> a much anticipated event, but did it deliver? will anything change? >> i am an optimist. i think if they did not change, that we will get a more accountable and responsible press that is not capable of committing criminal acts. >>> rupert murdoch and his son, james, faced a grilling as british politicians attempted to find out if they know anything about alleged phone hacking. both denied any knowledge of wrongdoing and were apologetic about what went on. he described the day as the most humble of his life. investors seemingly approved of what was said. news corp.'s share price rose by the close of sale tuesday. has the storm been weathered? has dominatedng politics here for weeks, but is it just a storm in a briti

a dent to the news corp operation, can they replace the bskyb revenues? key questions being asked on both sides of the atlantic. >> john with a look at the gargantuan media empire that is news corporation. >>> let's turn to the markets on unresolved debt problems in the united states and also in the eu meant a weak session in asia but it does seem in the first 60 minutes of trading here in europe we could see a bit of optimism returning to some of the markets. european stock markets are for the most part in positive territory and recovering to the tune of 1.4% are the dax is rising the most. we saw the same percentage scale yesterday and the cac 40 up 0.8%. ftse not up by much. >> we shot up shot in terms of trading in asia. the ongoing debt problems in the u.s. and the eu very much rattling the regions investors. looking at the numbers, you can tell by the losses no one's happy about this fact that we're in limbo really, certainly on the debt, and people are unhappy with the stress test going on in europe, they think they're too soft. there are the number

these are awful things. >> these are the problems of one newspaper, not of news corp.. the news of the world was shut down. unfortunately, the tactics used by tabloid newspapers are used by other tabloid newspapers also. >> james murdoch is in an uncomfortable position. either he knew what was going on and did not tell authorities, in which case he is perhaps liable for criminal prosecution, or he did know, and as a manager, he looks like he was not in control of his own organization. either way, it is not good. >> we should wait for the parliament and the prime minister. why should we preempt what they are going to come up with? >> one issue for you as a major investor is how the contagion from this crisis has spread. there are calls for a senate inquiry in the u.s., criticism of murdoch in newspapers across the entire world. this is a really serious problem for you as an investor. >> i hope this matter does not get over-publicized. politicians in the united states would like to take revenge on mr. murdoch's conglomerate. i think this should not be over- publicized. i t

news corp has admitted to hacking an american company and fox news be the next to correct. you need to know this the american people have spoken and it's time republicans and democrats listen according to a new a.b.c. washington post poll sixty two percent of americans want to see a balanced approach to raising the debt limit that includes both spending cuts and revenue increases and when it comes to what sort of revenue raises the american people want to see republicans heads are about to explode a whopping seventy two percent of americans support raising taxes on people who make more than a quarter million dollars a year only twenty seven percent oppose not only that large majorities of americans also support raising the social security tax cap closing the hedge fund manager tax loophole and cutting off taxpayer subsidies for big oil corporations curiously none of these reforms are part of the gang of six deal. now all the rage on capitol hill but a new gallup poll renders what's going on atop capitol hill today completely meaningless according to gallup most of us frankl

the news corp. eo and his son appeared before british legislators in a dramatic hearing that the elder murdoch called the most mumble day of my life. >>> stock jumped in australia and also in new york specifically in response to the murdochs' comments. the scandal has made a significant debt in the family's wealth pile. news corp. stocks fell by more than 12% in response to the hacking claims and the subsequent public outrage that followed. as a result, the shares owned by the murdoch family have loved more than $750 million in terms of their value. it's still worth remember that the family's stake in news corp. is worth more than $5 billion. the british prime minister david cameron could be in for a rough day as well today himself. he'll be facing parliament less than two hours from now addressing the news corp. phone hacking scandal head on and also what his opponents describe as a cozy relationship with news corp. executives like these two. his appearance comes hot on the heels of a parliamentary

precious voting or probably cameron over his links to disclosed news corps executives to discuss this that we're joined from new york. reporter for politico dot com david very good evening thanks for being on the program so i promise to cameron tried hard to distance himself from the toys did me that he has with news corp is definitely what i look at are going to be the hardest time for him since he took office just how deep are its connections with the murdoch empire do you think. well certainly there are a lot of politicians whether it's in england whether it's in great britain or in the united states that have very very deep ties with news corp and that happens in a lot of forms and fashions its not only in terms of the staff members and the relationships that have been built with news corp executives but also the money issues that have been coming into play here both in terms of campaign finance and direct the lobbying efforts that have been waged by news corp and its various subsidiaries who would have thought would end up like this almost a fight isn't it between heavyweights me

>> tom: a rare about face for one of the towards biggest media moguls, rupert murdock's news corp. will shut down its british tabloid "news of the world." that paper may not be on your news stand, but it is a best seller in the u. k. with almost 3 million subscribesers. the decision to close it comes after revelations the paper hacked into cell phone voice mails celebrities, royalty, and a teen-age murder victim. pressure has been building with big advertisers like ford and virgin pulling their business. and even the british prime minister calling for an investigation. paul la monica is author of inside rupert's brain, he joins us from new york. so, paul, murdock has never been known to back down from controversy. why do you think he did it this time? >> i think it's a calculated gamble that he needs to take, because news corp. is also at the same time trying to convince the british government that it should be allowed to buy the rest of the cable distributor there. it's something that he's been craving for a while. they own a minority stake in it right now, and i think he probably

you say problem, news corp says opportunity. news corp. sights on taking this little company down. they had the right guy to do it, according to a fortune magazine profile, he is similar to carlucci, who once tried to motivate his sales team by taking a baseball bat and crushing it. rupert murdoch's news america began to play hardball with floor graphics so so much so that in 2006 floor graphics had enough, filed an unfair news practice against news america. >> computer espionage. hacking. where have i heard this before? this complaint filed in new jersey federal court in 2006 accuses rupert murdoch's american supermarket services company of repeatedly and systematically hacking into their computer database. on at least 11 separate occasions, news america intentionally, knowingly, and without authorization breached our secure computer system and repeatedly accessed, viewed, and obtained our private information. how did they know it was news corp that was responsible? quote, our investigation traced the unauthorized access to a computer wit

i think it's not and now some people are beginning to connect the dots between news corp news and another hack job the climate gate scandal of two thousand and nine if you remember just before the un's copenhagen climate summit in december of two thousand and nine the secured servers along the climate research unit at the university of east anglia in the u.k. were hacked into and thousands of emails between climate scientists were stolen we now know that around the same time where this police were investigating this hack job they were also getting paid off by news corp to cover up other hacking crimes by rupert murdoch's news of the world we also know that rupert murdoch's fox news went crazy with the stolen emails and devoted months and months of coverage to hype them up as evidence that global warming is a hoax even though none of the stolen emails actually pointed to that conclusion and in fact they confirmed that global warming is real and has made many many so is this just a coincidence was fox news news corp behind the climate gate acting scandal two and if so what should be the con

news corp. said it would be absolutely appalled and horrified if the allegations prove true. its owner, rupert murdoch, has ordered full cooperation with the police investigation. >> yes, there was even worse to come. the relatives of soldiers killed in iraq and afghanistan have been warned their funds may have been hacked. they joined the families of those whose loved ones were blown apart on 7/7. >> my mind went back to 2005 and the emotional turmoil that we were in. and that somebody was listening to that, it is a violation. >> also on the list of possible targets, the parents of wholey and jessica. and of course, the parents of those who were given false hope that she was still alive when her voice messages were deleted after her phone was allegedly attacked. last night, the prime minister returned from afghanistan to learn of the brewing storm. >> yes, we it -- we do need to have an inquiry into what happened. we're no longer talking about politicians and celebrities. we're talking about mu

department of justice may soon be launching an investigation into news corp for violating the foreign corrupt practices act after it was learned that news of the world recently paid off corrupted british police officers so could this be the beginning of the end for murdoch's reign as the world's richest media mogul and should american regulators be taking a closer look at news corp operations here in the united states joining us now to offer his take is stephen webster senior editor at ross story stephen welcome it's based on this is no small issue i mean there's evidence that the sunday times owned by murdoch hacked bank brown's bank records is in france son's medical records and publish a story on the child serious illness or do you think this is going to end up in the u.k. . in the you're hearing i agree this will likely be reduced their attempt to start a process that a number of our distance are not right i'm not against it it needs to be referred to us. you know so impacts on the. we want to do our community our will to include. the. i think maybe even a larger question here is

the palace claimed voice mail messages were intercepted by news corps' the news of the world.apers royal reporter and private investigator were arrested. but the practice may have extended beyond that story. in 2002, 13-year-old british school girl millie dower disappeared and was murdered. on july 4th, 2011, allegations emerged that her voice mail may have been hacked and messages deleted to free space in her mailbox. leading her family to falsely believe she was alive. on july 6th. rupert murdoch chairman and ceo of news corps promised full cooperation with the police calling the accusations deplorable and unacceptable. he shut down the news of the world. then, the paper's former editor and former communications chief to british prime minister david cammeron andy coulson was arrested. and allegations surfaced that former prime minister gordon brown had also been targeted. the controversy caused news corps to drop its bid for british broadcaster b sky b. in the u.s., the fbi began investigating phones of 9/11 victims were hacked. last friday, the paper's former editor and hea

that there might be a new ceo put in charge of news corp. one of the biggest and most powerful media companies many the world and rupert murdoch showed his steel there and made it clear he's not going anywhere. >> michael isikoff thank you so much for keeping tabs on the hearing todd and for your insight. now let's bring in richard wolf who's been following this as well. before we get to the testimony can we talk about that pie in the face so to speak, the plate full of shaving cream that got flung. apparently it did spatter rupert murdoch a little bit which is why we're told he took off his jacket for the end of the hearing and wrap up of questioning. tell me about the tradition here and what we've learned about who this protesters was and what happened in this session? >> again, this started off on british tv many the '70s and has become a way of protest, it is what the mp called it, it was an assault on this person on rupert murdoch. thank goodness his wife stepped in the way she did. at least there was some satisfaction there. the gentle

the fbi has opened an investigation into allegations that murdoch's news corp. saw to hack into the phones of september 11 victims. we start tonight's coverage with this report from our deputy political editor. >> parliament has costumed the news of the -- to answer the questions of the mp's of why so many were hacked. >> my message to rebekah brooks is do the decent thing. it cannot hide away from this level of public english. >> they were reluctant witnesses. they told the committee he could not attend the future session. james murdock said he could not come. rebekah brooks said chiappone -- welcome the opportunity to do so but would not discuss anything that relates to the ongoing police investigation. the talk was of a formal summons. the threat had worked. they change their minds but they would now be coming to answer m.p.'s questions. in the second letter, james murdock said we're running to confirm our attendance by -- and concerned where are asked to yet answer further questions in a form on top of the judge let inquiry and the police investigation. whate

news corp shares fell on the australian exchange in sydney this tuesday, dropping 4.6% by the close of trade. now on the nasdaq in new york on monday, news corp shares closed down more, by 7% and since the scandal began, news corp lost around 11% of its value, which is around $5 billion. charles? >> well let's have a look into what the former british prime minister tony blair has been saying, because his successor, gordon brown has been targeted by the media but of course blair himself knows that while in office he took his share of journalistic jabs but he says he wasn't a victim of phone hacking for a simple reason, he didn't have a mobile, he didn't have a cell phone. mr. blair spokes to cnn's wolf blitzer and admitted it's sometimes difficult to strike a balance between the powers of british politicians and the press. >> there's a story out there in england right now that you urged gordon brown, the former prime minister to hold back in criticizing rupert murdoch and his empire in england because he would come back and slam you if he were to do so. is that story true? >> that is ab

i think they would still be interested in the books and records of news corp. news international is consolidated with news corp. and those records fail to disclosed there were bribes paid. and $8 million in stock value has disappeared over the last couple of weeks. there will be securities class actions that you never disclosed business practices and when they were disclosed, the value fell like a stone. >> reporting this scandal, and i don't think any journalist can possibly defend some of the stuff going on in terms of phone hacking missing girls who turn out to be murdered and so on, but in terms of longer-term benefit for journalism, you can see this could be a watershed moment that actually the perils of new technology and so on, in investigative journalism, dealt with in such a high-profile manner, and journalism itself may be better? do you worry conversely all of this attention on this means there may be further attacks on freedom of the press? >> i think you have to separate the questions. and it's a good question. one, there is no question it will make

all news corps. and it's all made a fortune for murdock and given him enormous business and political clout. now really for the first time, that power is in jeopardy. tonight there's signs that murdock's troubles could spill out of the uk and across the atlantic. there are three u.s. senators and one congressman calling for separate, u.s.-led investigations of news corp. brian? >> stephanie gosk in london tonight. stephanie, thanks. and we'll have much more on this story tonight on a cnbc special report, called "empire under attack" it airs at 7:30 eastern time on cnbc. >>> three powerful bombs exploded today in india's financial capital mumbai killing at least 21 people, it was the worst terrorist attack in mumbai since 2008. our coverage begins tonight with chief foreign correspondent richard engel. >> reporter: the bombs were well hidden and coordinated to explode at the height of mumbai's evening rush hour. the first exploded in a renowned jewelry market just before 7:00 p.m. a minute later, a se

fox news channel, murdoch himself, $1 p 250,000 to the republican governors association which news corpontributed last year. hundreds of thousands of dollars funneled mostly to leading republicans, but not exclusively. this and in new york state politics. hillary clinton, chuck schumer all of them have cultivated the murdochs and i think that there's a taint now over the company and over murdoch himself that's going to be very hard to erase early on. >> you on the wonder if all of a sudden there's more of a willingness by politicians on both sides it have the pond to stand up to him. robert moore, martin besheer told me a story about how murdoch entertains on an annual business. anyone who is anyone in the parliament they're there and they were all scared to death to ever speak out in opposition of a perceived position of murdoch's, the tide has changed in the last three weeks. >> the political culture in britain has been turned on its head. there were politicians from the conservative party and labour party who were enthralled with rue merit murdoch. -- rupert murdoch. the political cu

i think they would still be interested in the books and records of news corp. news international is consolidated with news corp. and those records fail to disclosed there were bribes paid. and $8 million in stock value has disappeared over the last couple of weeks. there will be securities class we sclosed, vel thy urli c enfonasmouca3u e,he inoueioit3 t. ats rmsible in w3 pojonasmndha spectacle and we'll know more by the end of it.pyo, l,r urti. >>> coming up, i want to bring a mawho knows the murdochs very well personally and what it will mean for the family business and the family itself. >>> we want to bring in a woman that knows the murdochs very well. she is a contributing editor although "vanity fair." thank you for joining me. obviously a hell of a mess for the murdochs. >> piers, i just got a call an hour ago, and ricco wanted to tell me personally, you know, he's not okay. ever since he met with millie dowler, the murdered girl's parents, he hasn't felt the same. his voice has been cracking, people around him are very concerned, his children are very c

properties of news corp. but is this now turning into a two-front war for the company, on both sides of the atlantic? >> you can see they're absolutely terrified of having to fight this in the u.s. as well. the evidence is very thin to nonexistent that there was any phone hacking done in america. certainly nobody has uncovered any evidence that 9/11 victims were hacked. jude law has brought a lawsuit against "the sun" alleging while he was at jfk airport he knew his voice mails were being listened to. that would be criminal activity in the u.s. if it happened. what the murdochs have to do is make sure it doesn't go nerney of their titles here, the "wall street journal" or "new york post" or any properties here. >> david, i wonder if you think the u.s. part of this is hype. we have a lot of members of congress and certain liberal media types jumping on saying we must investigate. but the locust of the story is very much in britain. >> there's no shortage of people in the american media establishment and the am