New York Kills News Corp. Contract

The fallout from the phone hacking scandal continues to spread: On Saturday, New York decided to end a contract it had with Wireless Generation, a tech company that specializes in software for teachers that News Corp. had invested $360 million in just last December. The Daily News says that Wireless Generation was set to make about $27 million as part of a $700 million contract with New York for software that was to be used to track student test scores.

And just in case you think this wasn’t because of the scandal, that maybe there were other factors involved, State Controller Thomas DiNapoli pulled no punches.

“In light of the significant ongoing investigations and continuing revelations with respect to News Corp., we are returning the contract with Wireless Generation unapproved,” he wrote in a letter to the Education Department.

That clears things up, doesn’t it?