New York State Cancels $27 Million Contract With Unit of Rupert Murdoch’s News Corp.


The entertainment conglomerate had acquired education technology firm Wireless Generation late last year to build an education business.

NEW YORK – The phone hacking scandal surrounding Rupert Murdoch’s News Corp. was a factor in a New York State decision to reject a $27 million contract with an education technology firm that the entertainment conglomerate had acquired late last year, the New York Daily News reported.

News Corp. had acquired the company, Wireless Generation, to start building an education division amid growth in the education market.

New York State controller Thomas DiNapoli last week rejected the Education Department's contract with the company that was part of "Race to the Top" funds to develop software to track student test scores, the Daily News said.

"In light of the significant ongoing investigations and continuing revelations with respect to News Corp., we are returning the contract with Wireless Generation unapproved," DiNapoli's office wrote, it said. It also cited an "incomplete record" about News Corp.'s qualifications.

A spokeswoman for the media giant declined comment.