News of the World shut down amid hacking scandal

News of the World, the 168-year-old tabloid, has been shut down by its owner Rupert Murdoch after being accused of hacking into phones of crime victims, celebrities and politicians. Police have identified 4,000 possible targets.

The Guardian reports that Andy Coulson, formerly David Cameron’s director of communications and a former NoW editor, will be arrested later. Coulson will be arrested over suspicions that he knew about, or had direct involvement in, the hacking of mobile phones during his time as editor.

He has insisted that he knew nothing about the practice.

Staff said they were stunned after News International chairman James Murdoch – son of Rupert – announced on Thursday that the NoW would shut, after days of increasingly damaging allegations. The paper’s editor Colin Myler said the news was “the saddest day of my professional career”.

In a statement made to staff, James Murdoch said the good things the paper did “have been sullied by behaviour that was wrong – indeed, if recent allegations are true, it was inhuman and has no place in our company.”

“The News of the World is in the business of holding others to account. But it failed when it came to itself.”

He said no advertisements would run in this weekend’s paper – instead any advertising space, and the proceeds from sales, would be donated to good causes. Murdoch reiterated that the company was fully co-operating with the two ongoing police investigations.

Downing Street has said it had no role or involvement in the decision to close.

News International has declined to comment on reports that the Sun could now become a seven-day-a-week operation.

The NoW, which sells about 2.8 million copies a week, is famed for its celebrity scoops and sex scandals. There have been repeated calls for Rebekah Brooks – the former editor, now News International’s chief executive – to resign.

Mark Pritchard, secretary of the influential Conservative backbench 1922 committee and vice-chairman of the parliamentary media group, wants the government to delay a decision on the BSkyB takeover.

In April, the NoW admitted intercepting the voicemail messages of prominent people to find stories. It came after years of rumours that the practice was widespread and amid intense pressure from those who believed they had been victims.

Royal editor Clive Goodman and private investigator Glenn Mulcaire had been jailed for hacking in January 2007 after it was found they had targeted Prince William’s aides. Detectives recovered files from Mulcaire’s home which referred to a long list of public figures and celebrities.

The scandal widened this week when it emerged that a phone belonging to murdered schoolgirl Milly Dowler, who was killed in 2002, had also been hacked into, and some messages deleted.

It is also emerged that bereaved military families and relatives of 7/7 London bombing victims may have had their phones hacked.

Further revelations showed that the NoW had passed to police e-mails which allegedly showed payments by it to the police were approved by the then editor Coulson.

Leading brands pulled their newspaper advertising and shares in BSkyB fell on fears that the scandal could hinder parent company News Corp’s bid for the broadcaster.

On Wednesday, the government promised an inquiry in the hacking allegations, but the nature of it is undecided.