Sounds like he was angry over the false story and not the money paid, which is the implication in the Guardian headline.
Jan. 9 (Bloomberg) -- News Corp. Chairman Rupert Murdoch took a hands-on approach to his U.K. newspapers, the Sun tabloids former editor told an inquiry into press ethics, recounting Murdochs reaction to a story about Elton John.Murdoch was angry about the Sun paying a 1 million-pound ($1.54 million) settlement to the pop singer over a false news story in 1987, the inquiry heard today from Kelvin MacKenzie, who edited the Sun from 1981 to 1994. The story wrongfully claimed Elton John had paid for sex with underage rent boys.
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