When News Corporation announced last fall its entry into the education technology market, some observers said the media conglomerate led by Rupert Murdoch was a bad fit for education. Between the ownership of conservative-leaning outlets like Fox News and a reputation for identifying opportunities to generate lots of revenue very quickly, News Corp. had a business model, they suggested, that would not mesh well with a world where public-employee unions hold influence and business development typically is gradual. Now, just as News Corp. had appeared set to expand its education holdings beyond its recently acquired subsidiary Wireless Generation, those concerns are joined by a deluge of legal and ethical issues surrounding the phone-hacking scandal in the company's United Kingdom division. Amid the furor over a tabloid's phone hacking, the company's Wireless Generation subsidiary seeks to distance itself from the fallout while facing questions about New York contracts.