1. Obvious

    News Corp. Admits Scandal’s ‘Damage’

    News Corp. signage is displayed in front of the company's offices in New York, U.S., on Tuesday, July 12, 2011. News Corp.'s Rupert Murdoch and his son James as well as News International Chief Executive Officer Rebekah Brooks were summoned to appear before U.K. lawmakers to answer questions about the company paying police for stories.

    Paul Taggart / Bloomberg / Getty Images

    News Corp. admitted Monday that the phone-hacking scandal might harm the company’s reputation, despite recently reporting $2.7 billion in profits. In the company’s annual filing to the SEC, it wrote, “It is also possible that these proceedings could damage our reputation and might impair our ability to conduct our business.” The company also admitted that although it is "cooperating fully” with the investigations against it, it is “not able” to foresee the “ultimate outcome” of these investigations. News Corp. is currently under investigation by British authorities, the FBI, and the NYPD for allegations that the now-defunct News of the World newspaper—and possibly other News Corp. publications—hacked into the phones of newsworthy individuals, including the families of victims of the Sept. 11 terrorist attacks.

    Read it at Talking Points Memo