“This is the humblest day of my life,” declared Rupert Murdoch to a parliamentary committee on July 19, 2011. This statement came at the height of what newspaper historian Roy Greenslade termed “the most astonishing 14 days in British press history,” characterized by daily shocks and revelations. These dramatic events are now the focus of a series on Stan, and journalist Nick Davies has revisited them in a reissued edition of his 2014 book, Hack Attack: How the Truth Caught Up with Rupert Murdoch, complete with a new afterword that sheds further light on the Murdoch company’s extraordinary behavior over the last decade.
The scandal began on July 5, 2011, when Davies published an article in The Guardian revealing that Murdoch’s Sunday paper, the News of the World, had tapped the phone of teenage murder victim Milly Dowler. This revelation was the culmination of a slowly building scandal that had been simmering since August 2006, when a News of the World reporter and a private investigator were arrested for tapping the phones of Princes William and Harry.
The Scandal Unfolds
The investigative efforts of Davies and the editorial courage of The Guardian initially bore little fruit, but the publication of the Dowler story broke the dam. Politicians fiercely denounced the actions of Murdoch’s papers, leading to the closure of the News of the World. Murdoch also abandoned his bid to increase his ownership of satellite broadcaster BSkyB from 39% to 100%, which would have marked the largest deal in his history. High-profile resignations followed, including London’s chief police officer and a deputy, due to their close ties with Murdoch’s publications.
The scandal prompted Prime Minister David Cameron to launch the Leveson Inquiry, the most extensive investigation ever into the British press. Over nine months, starting in November 2011, the inquiry heard from 337 witnesses, including current and former prime ministers, culminating in a 2000-page report released in November 2012.
Legal Battles and Corporate Maneuvers
The police responded with several operations: Operation Weeting to investigate phone hacking, Operation Elveden to probe bribes to police, and Operation Tuletta to examine computer hacking. Despite the intense scrutiny, Murdoch gradually reasserted his power. The longest-running criminal trial in British history concluded in June 2014, with most of Murdoch’s employees, including Rebekah Brooks, found not guilty. However, former News of the World editor Andy Coulson was convicted and jailed for conspiracy to hack phones.
Murdoch’s legal defense was formidable, with legal fees far outstripping those of the prosecution. Davies estimated the prosecution’s costs at £1.7 million, while Murdoch’s defense fund was 30 times greater. This financial muscle allowed for a barrage of procedural complaints and objections, complicating the trial process.
After the trial, media attention waned significantly. Murdoch’s legal team successfully prevented police from interviewing him, redirecting efforts to uncover Davies’ sources instead.
The Aftermath and Financial Implications
Despite the scandal fading from headlines, it left a costly legacy. Over 1200 individuals sued Murdoch’s company, with settlements often reached through “part 36 offers,” a British legal mechanism encouraging settlement over trial. These settlements, always without admitting liability, cost the Murdoch company approximately £1.2 billion in legal fees and payouts, with some estimates suggesting a total closer to £3 billion when considering internal costs.
The financial strain on Murdoch’s empire is evident. The Sun, once a cash cow, has suffered significant losses, exacerbated by the ongoing costs of the scandal. From 2019 to 2024, the paper’s losses totaled £515 million, with the scandal-related costs gradually decreasing but still substantial.
Recently, in January, a high-profile settlement was reached with Prince Harry and former Labour MP Tom Watson, costing the Murdoch company £13.5 million. This settlement, like others, avoided a trial that could have further exposed damaging evidence.
Revelations and Ongoing Controversies
In the new afterword of his book, Davies explores further revelations, including the use of illegal means by Murdoch’s tabloids to advance corporate interests. He details how the tabloids targeted critics and opponents, using tactics such as phone hacking and surveillance.
One email revealed reporters were instructed to uncover personal secrets of those critical of Murdoch, exemplifying the aggressive strategies employed by the empire.
Davies himself became a target, with a file labeled “Nick Davies Research” compiled by Murdoch’s team, though it yielded nothing beyond public knowledge. Politicians and public figures who challenged Murdoch faced similar scrutiny and legal battles, often settled with substantial payouts but no admission of guilt.
The destruction of evidence also features prominently in Davies’ new material. Allegations of email deletions and obstruction of justice, though never resulting in convictions, paint a picture of a company willing to go to great lengths to protect its interests.
A Deeper Understanding of the Murdoch Empire
Davies’ latest revelations add to our understanding of the Murdoch empire’s inner workings, highlighting the lengths to which it has gone to maintain power and influence. While the book may not reignite the scandal, it offers a comprehensive account of the events and a critical examination of the politics and culture surrounding one of the world’s most powerful media conglomerates.
As the Murdoch empire continues to navigate the fallout from past actions, the revelations in Davies’ book serve as a reminder of the complex interplay between media, power, and accountability.
