This round-up of today's main media stories focuses on News Corp's decision to abandon its BSkyB bid after the phone-hacking scandal and the implications for its other media interests.
"Rupert Murdoch's grand plan for a huge expansion of his media empire was in tatters last night as the 'firestorm' over phone hacking forced him to withdraw his bid to take over BSkyB", reports the Daily Mail. The paper goes on to say "the tycoon shelved his £10billion offer as David Cameron, Nick Clegg and Ed Miliband joined forces in a Commons debate urging him to back off". It explains Mr Cameron announced details of a judicial inquiry into press standards, regulation and ownership, and allegations of illegal phone hacking by the News of the World and police corruption.
The Daily Telegraph says Rupert Murdoch was facing the prospect of an investigation into his American companies last night as powerful senators questioned whether News Corp had broken US laws and engaged in "criminal" activity.
The Guardian says concerns are surfacing in the City about James Murdoch's role as chairman of BSkyB, as investors consider the implications of the phone hacking scandal. The paper quotes one investor, requesting anonymity, as saying: "James Murdoch's position is a concern." The paper explains Murdoch's role is under scrutiny in the wake of his admission that he authorised generous out-of-court settlements to victims of hacking three years ago, but "did not have a complete picture when he did so".
The Sun reports that Daybreak staff are furious after their boss was axed - and say presenters Adrian Chiles and Christine Bleakley should be sacked instead. It says Veteran newsman Ian Rumsey is being replaced over the ITV daytime flop's "measly" 700,000 viewers.
The BBC is making preparations to try and avoid a blackout of news programmes during Friday's planned 24-hour walkout by journalists, says the Guardian. "Negotiations with the National Union of Journalists over compulsory redundancies at BBC World Service and BBC Monitoring are going down to the wire, with news staff due to take industrial action from midnight on Thursday. Preparations are under way to ensure cover is on standby for key programmes such as BBC Radio 4's Today."
The collapse of Rupert Murdoch's bid to take full control of BSkyB is the main story for the broadsheets, as reported in the BBC's newspapers review.