The tabloid at the centre of the phone-hacking scandal that consumed Britain is planning to shut down.
James Murdoch -- son of media baron Rupert Murdoch, who owns "News of the World" -- said the paper's last edition will be published on Sunday after losing several advertisers due to the scandal.
The decision came after three days of revelations about the paper's intrusive wire-tapping activities, which including accessing a teenage murder victim's voicemail messages. Hackers also targeted relatives of soldiers killed in Iraq and Afghanistan and family members of victims of London's 2005 subway bombings.
James Murdoch, who runs the European division of News International, said 200 jobs will be lost in the closure.
Spokeswoman Daisy Dunlop said Thursday that employees who lose their jobs will be eligible to apply for other positions within the large media conglomerate.
"News of the World" has been publishing for 168 years and Thursday's announcement took media-watchers by surprise. Its final edition will run without ads, with James Murdoch promising all money from its sale will go to "good causes."
"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 told employees when announcing the closure.
Dunlop denied online rumours that suggested "The Sun," a similar newspaper also operated by News International, would shift from a five to seven-day publication to replace the folding paper.
"It's not true at the moment," she said.
While the paper's management had already admitted to hacking cellphones of actors, politicians, royal aides and other celebrities -- and paid cash settlements to several of them -- the discovery it had potentially compromised an investigation into a child's murder caused public opinion to explode.
Parliamentarians held a debate on the subject on Wednesday, many expressing disgust and revolt that the paper would spy on such vulnerable members of the public.
James Murdoch indicated he had no idea such activities were taking place under his watch, saying that 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.
Police are now combing though a list of thousands of people who may have been targeting by the paper's hackers. They are pleading with the public to be patient as they work their way through the massive document.
While the phone hack revelations are definitely bad for "News of the World," they could shine a less-than-desirable light on other News Corp. properties, said Carlton University journalism school director Christopher Waddell.
He said two public inquiries scheduled to examine the hacks will shine even more negative press on the company's practices, and will inevitably lead consumers to wonder if the same practices were ever allowed at New Corp.'s other properties.
"They might have to independently prove they operate at higher ethical standards than the News of the World," Waddell told CTV News Channel on Thursday, saying it's hard to believe the paper's management didn't know the hacking was going on. "Either they knew more than they said they did, or they deliberately tried to avoid knowing more.
"When something like this happens it damages the media, and it damages the credibility of all journalists."
With files from The Associated Press
