Rupert Murdoch, News Of The World | featured news

Prime Minister David Cameron's ex-media chief and Rupert Murdoch's former UK newspaper boss are to be charged with phone-hacking offences in the most significant development in a scandal that has rocked Britain's establishment.

Prime Minister David Cameron faced a televised grilling over the nature of his relationship with Rupert Murdoch's press group on Thursday at an inquiry that has turned into a slow-motion political disaster for the British leader.

David Cameron signed off messages to tabloid editor Rebekah Brooks with an affectionate "LOL", she told an inquiry on Friday, conjuring the embarrassing image of a British prime minister-in-waiting fawning over a Rupert Murdoch protégée.

Murdoch was smiling at the end of the day Thursday after News Corp. announced a profit increase that dwarfed their scandal-related expenses.

Rupert Murdoch blamed News of the World journalists for conspiring to cover up a culture of phone-hacking at the tabloid, saying they hid their activities from his son James and protégée Rebekah Brooks and that he personally was not paying attention.

James Murdoch, the son of media titan Rupert Murdoch, testified Tuesday that he had no idea phone hacking was widespread at the News of the World tabloid and that he would have insisted the company "get to the bottom of what was going on" had he known.

Rupert Murdoch's News International has settled nearly all cases in the first wave of phone hacking lawsuits brought against his company.

Police investigating Britain's phone-hacking scandal made another arrest Friday, keeping up the pressure on Rupert Murdoch's media empire. Officers from Scotland Yard arrested a 47-year-old woman early Friday morning in Essex, a county just east of London. Police said she was the 17th person to be arrested as part of Operation Weeting, the official investigation into phone hacking.

A phone hacking scandal may have cost Rupert Murdoch his biggest-selling newspaper in 2011, but the billionaire media mogul managed to end the year with a modest addition to his empire -- an account on Twitter.

The phone hacking scandal engulfing Rupert Murdoch's News Corp threatened to spread to other titles on Friday, as sources said a journalist at the Sun newspaper had been arrested over allegations of police bribery.