News Corporation's BSkyB Takeover Decision 'Delayed' Over NoTW Scandal

A decision on News Corporation's proposed takeover of BSkyB could be delayed until September as outrage over the phone hacking scandal at the News of the World (NoTW) continues.

The NoTW has been sensationally axed by Rupert Murdoch's corporation, following the revelation that employees at the newspaper illegally hacked into the mobile phones of Milly Dowler, the teenage girl who went missing and was later found murdered, as well as further allegations that indicated that other missing children, including Holly Wells and Jessica Chapman and relatives of July 7 bombing victims and British soldiers killed in actions may have been among those whose mobile phones were targeted in the scandal.

The edition of of the NoTW on Sunday, July 10, will now be the last. One of the paper's former editors, Andy Coulson - who was forced to resign from his position as Downing Street communications chief earlier this year, following previous allegations of phone-hacking involving a number of celebrities and public figures - has been arrested to face further questioning over the scandal, as well as questioning over fresh allegations that police officers received payments from the NoTW. Mr Coulson, 43, has denied any knowledge of phone hacking at the paper while he was editor.

Clive Goodman, the paper's former Royal editor, who was jailed for phone hacking in 2007, has also been arrested over allegations of corruption.

Both were arrested on Friday, July 8.

Prime Minister David Cameron has also announced two inquiries into the scandal - one which will be judge-led and the other, which will focus on the ethics and culture of the press.

However, the outrage over the scandal is continuing, with many reports focusing on the fact that the Chief Executive of News Corporation's UK subsidiary News International - and editor of the NoTW at the time Milly Dowler's phone was hacked - Rebekah Brooks will not lose her position.

Labour leader Ed Milliband has called for a judicial inquiry into the matter and urged the Government to reconsider the BskyB takeover proposal. He said: "The practices at the News of the World have harmed innocent victims and contaminated the reputation of British journalism. But closing the News of the World is not the answer. Those who were in senior positions at the time phone hacking was taking place must also take responsibility. I strongly urge the Government to take responsibility and think again about how it is handling the BSkyB decision."

Earlier this month, it was revealed that the Government had provisionally agreed to accept News Corporation's proposed takeover of BSkyB, but was consulting on four extra conditions to the deal, including having an independent editorial director at Sky News board meetings. The consultation was set to close on Friday, July 8, but Culture Secretary Jeremy Hunt is now reported to have received more than 100,000 submissions regarding the takeover since the fresh allegations were reported.

News Corporation already owns 39% of BSkyB.