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“I want everyone to be clear: Everything that has happened is going to be investigated,” Cameron said.

He said a judge will be appointed to lead a thorough investigation of what went wrong at the News of the World, including alleged bribery of police officers, and a second inquiry to find a new way of regulating the press.

The scandal exploded this week after it was reported that the News of the World had hacked the mobile phone of 13-year-old murder victim Milly Dowler in 2002 while her family and police were desperately searching for her. News of the World operatives reportedly deleted some messages from the phone’s voicemail, giving the girl’s parents false hope that she was still alive.

That ignited public outrage far beyond any previous reaction to press intrusion into the lives of politicians and celebrities, which the paper has acknowledged and for which it has paid compensation to some prominent victims, including actress Sienna Miller.

Dozens of companies pulled their advertising from the paper this week, fearing they would be tainted by association. James Murdoch then announced Thursday that this Sunday’s edition of the tabloid would be its last and all revenue from it will go to “good causes.”

It’s widely suspected News International will launch another paper into the Sunday market that has been dominated for decades by News of the World. Brooks said “no decision has been taken yet on any new publications or expanding existing ones.”

But according to online records, an unnamed U.K. individual this week bought the rights to the domain name “”

The British government gave its qualified approval in June to Murdoch’s News Corp. purchasing the 61 percent of British Sky Broadcasting that it doesn’t already own, on the condition it spins off news channel Sky News as a separate company.

But Culture Secretary Jeremy Hunt said Friday there had been a huge number of responses to a public consultation on the takeover, said to exceed 100,000 submissions, and that will delay the approval process.

Despite the public outcry, many analysts think Britain will still sanction the takeover but delay it until at least September.

A billion pounds ($1.6 billion) was wiped off the value of BSkyB Friday, with shares closing down 7.6 percent in London as investors recoiled at the bad news. Shares in the Nasdaq-listed News Corp., which owns 39 percent of BSkyB, were down 3.5 percent at $16.82 around midday in New York.


Danica Kirka, Cassandra Vinograd and Raphael G. Satter contributed to this report.