LONDON — News International announced Thursday it is shutting down the News of the World, the best-selling tabloid at the center of Britain's phone hacking scandal.
James Murdoch, who heads European operations for the paper's parent company, said the 168-year-old weekly newspaper would publish its last edition Sunday. The scandal has cost the Sunday-only paper prestige and prompted dozens of companies to pull their ads.
Murdoch said in a memo to staffers that all revenue from the final issue, which will carry no ads, would go to "good causes."
The announcement took British media-watchers — and the newspaper's staff — by surprise.
The Rupert Murdoch-owned tabloid is accused of hacking into the cell phone messages of victims ranging from missing schoolgirls to grieving families, celebrities, royals and politicians in a quest for attention-grabbing headlines. Police say they are examining 4,000 names of people who may have been targeted by the paper.
The News of the World, which sells close to 3 million copies a week, has acknowledged that it hacked into the mobile phone voice mails of politicians, celebrities and royal aides. A reporter and a private investigator working for the paper were jailed for phone hacking in 2007.
But in recent days the allegations have expanded to take in the phones of missing children who were found slain, the relatives of terrorist victims and families of soldiers killed in Afghanistan.
James Murdoch, Rupert's son, said if the allegations were true, "it was inhuman and has no place in our company."
"Wrongdoers turned a good newsroom bad," he said, "and this was not fully understood or adequately pursued."
"While we may never be able to make up for distress that has been caused, the right thing to do is for every penny of the circulation revenue we receive this weekend to go to organizations — many of whom are long-term friends and partners — that improve life in Britain and are devoted to treating others with dignity," he said.