Media Matters Statement On Cancellation Of News Corp.'s Wireless Generation Contract With New York State

Washington, DC -- Today, Media Matters for America released the following statement in response to news that News Corp.'s contract with New York state was canceled:

"New York's cancellation of News Corp.'s Wireless Generation contract with the State shows just how far confidence in Rupert Murdoch's empire has plummeted. Why would millions of New York parents entrust sensitive information about their children to a company now best known for violating the privacy of private citizens?" said Ilyse Hogue, Media Matters Senior Adviser and Director of NewsCorpWatch.org. "Investors should be very worried and observers left wondering just how high a price News Corp. will pay for this scandal and what News Corp. needs to do to restore confidence of an outraged public."

BACKGROUND

Late Friday, New York state Comptroller, Thomas DiNapoli announced the cancellation of a state-wide contract with News Corp. (NWS) subsidiary Wireless Generation. News Corp. announced its acquisition of the education software company while Joel Klein still held his post as Chancellor of the New York City Department of Education, but after Klein had already announced his intention to become an Executive Vice President of New Corp. and CEO of News Corp.'s newly created education division. Klein has also been appointed to lead News Corp.'s internal investigation into the hacking scandal.