Taps for News of the World

Here's why Rupert Murdoch decided he'd rather not fight to save his troubled tab:

The abrupt announcement on Thursday from a top official at the paper's parent company, James Murdoch, underscored the devastating effect of allegations that the paper's journalists invaded the voicemail accounts not only of a 13-year-old murder victim but also the relatives of fallen soldiers in Iraq and Afghanistan.

The scandal is taking a toll on News Corp., with stock prices falling and new questions about Mr. Murdoch’s proposed $12 billion takeover of the pay-television company British Sky Broadcasting. Many legislators criticized the deal on Wednesday, and Britain’s media regulatory agency, Ofcom, said it was “closely monitoring the situation.”