11.30am: The culture secretary, Jeremy Hunt, has made a statement confirming what everyone anticipated - that the decision on the BSkyB deal will be delayed because of the volume of submissions received relating to it. As has been noted previously, it saves him having to give it the green light, assuming that is the decision he will take, in the midst of a media storm surrounding News Corporation. Hunt said:
The consultation on undertakings in lieu offered by News Corporation in relation to their proposed merger with BSkyB closes at midday today. The secretary of state has always been clear that he will take as long as is needed to reach a decision. The secretary of state will consider carefully all the responses submitted and take advice from Ofcom and the Office of Fair Trading before reaching his decision. Given the volume of responses, we anticipate that this will take some time. He will consider all relevant factors including whether the announcement regarding the News of the World's closure has any impact on the question of media plurality.
http://www.guardian.co.uk/media/blog/2011/jul/08/news-of-the-world-phone-hacking-scandal#block-26Yeah, it's more than a 'reputation hit'.
Ofcom has the ability to declare News Corp not a 'fit and proper' controller of a broadcasting company. 'Media plurality' is something that the proposed selling off of the Sky News Channel was said to have solved; if Murdoch didn't start producing a Sunday edition of The Sun, to replace the News of the World, that would probably help him there too.
My guess is Murdoch will throw Rebekah Brooks overboard, so that there are less ex-News of the World executives hanging around in his organisation that would have control over BSkyB.