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Thread: A Potential Positive to the News Corp Scandal

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    A Potential Positive to the News Corp Scandal

    [B][SIZE="4"]Scandal and Scrutiny Hem In Murdoch’s Empire[/SIZE][/B]

    In the months after a phone-hacking scandal erupted in Britain last summer, Rupert Murdoch told people within News Corporation that he wanted to revisit his media company’s discontinued $12 billion bid for the pay television service British Sky Broadcasting.

    Mr. Murdoch, the chairman of News Corporation, still viewed the acquisition of the 60 percent of BSkyB not already owned by News Corporation as a strategically important investment. The TV company, which posted an operating profit of more than $1.7 billion in 2011, would have provided a steady revenue stream for his company.

    Pressure was put on News Corporation, mostly by investment bankers specializing in the media sector, who suggested that the best way to win government approval for the deal would be to sell or spin off its embattled British newspaper unit, News International, to help ease lawmakers’ concerns about Mr. Murdoch’s company owning the country’s largest satellite TV operator.

    Mr. Murdoch rejected those proposals, according to a person involved in the discussions who was not authorized to comment publicly on the conversations.

    [B]Any shred of hope for a BSkyB takeover in the near future appeared to have been dashed last week after e-mails surfaced suggesting that a News Corporation lobbyist and a British culture minister had conspired to get the deal approved[/B].

    “I don’t think anybody believes they’ll get another shot at controlling BSkyB any time this decade,” said a person familiar with the company, who would discuss its strategic plans only on the condition of anonymity.

    The failed deal highlights a period of caution and relative stagnation at the $50 billion media empire known for its risk-taking and forward-thinking acquisitions.

    For months, News Corporation’s buoyant stock price and solid financial performance, driven by the strength of its United States television assets, had allowed executives based in New York to paint the scandal as an unfortunate but isolated series of events at the British tabloids, a tiny part of the overall business.

    But the events in Britain and the resulting scrutiny have begun to take a toll on the broader empire, according to at least a dozen people familiar with the company, including several former News Corporation executives.

    On Tuesday, the Culture, Media and Sport Committee of the British Parliament is expected to release a report that could further damage the company’s reputation.

    Inside the company, one of the biggest concerns is that News Corporation now sits under a magnifying glass, making any potentially suspect business dealings, even from years ago, vulnerable to scrutiny by the United States government.

    A former News Corporation subsidiary, a Moscow-based billboard company called News Outdoor Russia, is the subject of an F.B.I. inquiry into whether the company bribed local officials to advance its business. The findings of that investigation could prove a violation of the Foreign Corrupt Practices Act, according to a person briefed on the inquiry. News Corporation sold the company in July to a bank controlled by the Kremlin.

    The potential for a billion dollars in fines related to a violation of the corrupt practices act could dwarf the economic downside of anything related to the lawsuits in Britain, said Behnam Dayanim, a regulatory lawyer based in Washington. “It may be the single most feared corporate criminal statute out there today,” Mr. Dayanim said.

    News Corporation declined to comment. News Outdoor Russia has denied all suggestions that the company bribed officials to advance its business.

    [B][SIZE="4"]The hacking scandal has delivered a blow to News Corporation’s push into the potentially lucrative education sector, a project prized by Mr. Murdoch[/SIZE][/B] :eek:. In November 2010, News Corporation paid $360 million for a 90 percent stake in Wireless Generation, an education technology company based in Brooklyn that specializes in interactive learning tools.

    In August, Wireless Generation lost its $27 million no-bid contract to develop educational software for New York schools. Thomas P. DiNapoli, the New York State comptroller, said the state rejected the contract “in light of the significant ongoing investigations and continuing revelations with respect to News Corporation.”

    In Turkey, News Corporation, which already operates several Turkish television stations, is one of three bidders for the country’s second-largest media group, Sabah-ATV, which is valued at $700 million to $1 billion. A deal would add to its portfolio of international pay TV stations, which includes Sky Deutschland in Germany and Sky Italia in Italy.

    But the bid could face regulatory opposition in Turkey as a result of the scandal. “They’re persona non grata right now as a bidder on assets,” said a person familiar with the company’s plans who did not want to publicly criticize News Corporation.

    A News Corporation spokeswoman said the events in Britain had not affected potential acquisitions elsewhere.

    Throughout the scandal, the company has managed investor nervousness by praising its entertainment assets and strong revenue. But it has also undertaken an expensive stock buyback program worth $5 billion, an anomaly for News Corporation and Mr. Murdoch.

    Michael Nathanson, an analyst at Nomura Securities, praised the stock repurchases and minimized the effect the hacking scandal was having on the company’s overall strategy.

    “I can’t imagine how what’s happening in the U.K. is impacting the people making huge decisions in those businesses,” Mr. Nathanson said. “I firmly think this is a story for folks in the U.K.”

    Others say News Corporation did not grow from a tiny newspaper company in Adelaide, Australia, to one of the world’s largest media companies by sitting dormant.

    “Buying back the shares isn’t building anything,” said Todd Juenger, an analyst at Sanford C. Bernstein & Company. “It’s not making the company bigger. It’s just changing the capital structure.” He added: “I’d rather see a company that is growing and building asset value than uniformly returning cash to shareholders.”

    Inside News Corporation, the hacking scandal has consumed an increasing amount of attention. Mr. Murdoch, a hands-on manager who likes nothing better than to talk about his newspaper coverage, has spent the last several weeks preparing for the Leveson Inquiry into media ethics in Britain, being overseen by Lord Justice Leveson.

    Joel I. Klein, hired by Mr. Murdoch to lead News Corporation’s education initiatives, and Gerson A. Zweifach, a Washington lawyer hired as the company’s in-house counsel, have led the preparation, according to people close to the company and familiar with Mr. Murdoch’s schedule.

    At least temporarily, two of Mr. Murdoch’s adult children, James and Elisabeth, have both been put at a distance from important corporate decision making in the aftermath of the scandal. Elisabeth, known for her acumen in television programming (she is credited with persuading her father to broadcast “American Idol”), withdrew from joining News Corporation’s board in August amid widening investigations into the company’s British operations and criticism about nepotism on the company board.

    James, once considered his father’s heir apparent, resigned as chairman of BSkyB this month, and has since spent time in Los Angeles meeting with studio executives to discuss ideas for making content more readily available digitally. He has also spent time in India and China, far from News Corporation’s power base in New York, according to several people familiar with the company who were not authorized to discuss James’s whereabouts.

    James works closely with Chase Carey, News Corporation’s president and chief operating officer, “on driving our overall growth with a keen focus on our global television business and expansion into digital platforms,” a News Corporation spokeswoman, Julie Henderson, said.

    And the scandal has cost Rupert Murdoch several of his most-trusted executives. News International’s former chief, Rebekah Brooks, faces possible criminal charges for her role in the scandal. Les Hinton, who had worked with Mr. Murdoch for 52 years, stepped down as the top executive at Dow Jones.

    In testimony last week, Mr. Murdoch criticized Mr. Hinton, formerly News International’s chief executive, for hiring Colin Myler as editor of News of the World and not pressing him to find out “what the hell was going on” at the tabloid. He also blamed Mr. Myler and another longtime adviser, a News International lawyer, Tom Crone, for a “cover-up” of phone hacking, calling Mr. Crone “a drinking pal” and “a clever lawyer.” In response, Mr. Crone called Mr. Murdoch’s attack “a shameful lie.”

    [url]http://www.nytimes.com/2012/04/30/business/media/hacking-scandal-starts-to-hem-in-rupert-murdochs-empire.html?pagewanted=all[/url]

  2. #2
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    The two potential positives to come out of this embarrassment is:
    1. It will slow down the relentless global media monopoly that Rupert Murdoch was attempting to control. The amount of control that Murdoch already had over the media is horrific.

    2. The indoctrination of adults has been happening for a while. Now , as the writer points out, Murdoch was attempting to inculcate the children by spending millions on "educational" :rolleyes: tools so that his brand of "news" could be consumed by children.

    Hopefully the investigations can shed further light on the vile nature of this media monopoly. However the apologists will be ready and armed with excuses.

  3. #3
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    Are you as obsessed with the corruption and false reporting at NBC as you are with Rupert Murdoch?

    Forget it... we all know the answer. :rolleyes:

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    [QUOTE=DeanPatsFan;4454592]Are you as obsessed with the corruption and false reporting at NBC as you are with Rupert Murdoch?

    Forget it... we all know the answer. :rolleyes:[/QUOTE]

    It's comical, really

  5. #5
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    [QUOTE=JetPotato;4454661]It's comical, really[/QUOTE]

    It really is..

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    What is comical is how some here will post endless conspiracy stories about forged birth certificates and essays from elementary school but yet cannot see (or refuse to see) how big this story is about to get. You have the [B]largest[/B] media conglomerate in the world involved in one of the worst news scandals in recent memory. There are reports that this is just the tip of the iceberg.
    Last edited by intelligentjetsfan; 04-30-2012 at 01:07 PM.

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    [QUOTE=DeanPatsFan;4454684]It really is..[/QUOTE]

    REALLY IS!

    The doctoring of the Travon Martin 911 call as a small but recent example goes with so little press.

    Dan Rather butcher job of BUSH a few years ago??? That would NEVER have been caught without FOX and new internet sources helping to de-monopoloze the lefts lock on media that our good friend IJF never seems to fully acknowledge.

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    [QUOTE=southparkcpa;4454857]REALLY IS!

    The doctoring of the Travon Martin 911 call as a small but recent example goes with so little press.

    Dan Rather butcher job of BUSH a few years ago??? That would NEVER have been caught without FOX and new internet sources helping to de-monopoloze the lefts lock on media that our good friend IJF never seems to fully acknowledge.[/QUOTE]

    I DO acknowledge that, my friend, I really do.

    But I also know, without hesitation, that had that have been the reverse; had it been irresponsible actions by conservatives, there would be excuses or marginalizing done by News Corp. History has proven that as well.

    And as bad as the media is as a entity, this scandal will be one of the worst in media history. You will just have to tune into other channels besides fox to get the whole story.

  9. #9
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    With the advent of the internet...Fox News... etc, the left and their propaganda arm in the criminal liberal media can no longer brain wash the masses, and they can't handle it.... :yes:

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    [QUOTE=intelligentjetsfan;4454841]What is comical is how some here will post endless conspiracy stories about forged birth certificates and essays from elementary school but yet cannot see (or refuse to see) how big this story is about to get. You have the [B]largest[/B] media conglomerate in the world involved in one of the worst news scandals in recent memory. There are reports that this is just the tip of the iceberg.[/QUOTE]

    Link to any post of mine about birth certificates or essays. Thanks.

    Maybe before you try to do our thinking for us you could do some for yourself first.

  11. #11
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    [QUOTE=DeanPatsFan;4454919]With the advent of the internet...Fox News... etc, the left and their propaganda arm in the criminal liberal media can no longer brain wash the masses, and they can't handle it.... :yes:[/QUOTE]

    spoken from the person who regurgitates conspiracies about hidden elementary school essays.......

    :zzz:

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    [QUOTE=JetPotato;4454927]Link to any post of mine about birth certificates or essays. Thanks.

    Maybe before you try to do our thinking for us you could do some for yourself first.[/QUOTE]

    the posting of conspiracy stories was not a reference to you.

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    [QUOTE=intelligentjetsfan;4454932]the posting of conspiracy stories was not a reference to you.[/QUOTE]

    I was the first to post how comical it is that you're so concerned with what the right-biased media is up to these days and seemingly unconcerned about what the left-based media has been up to for far longer than NewsCorp ever existed. They were the blueprint in fact that enabled this in the first place.

    Like every post you place here, you don't ever attempt any objectivity whatsoever. We get it, you're angry at the right ("Murdoch, Christie WHARGLEBARGLE!") and don't care that they're no different than the left. It's still amusing to me.

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    [QUOTE=DeanPatsFan;4454592]Are you as obsessed with the corruption and false reporting at NBC as you are with Rupert Murdoch?

    Forget it... we all know the answer. :rolleyes:[/QUOTE]

    Couldn't the same be said for you in reverse?

    Ignore Murdoch, celebrate Breitbart as a hero, and vilify NBC.

    We're all guilty of criticizing/piling on those we disagree with politically, with a bit of a blind eye for those we agree with.
    Last edited by SafetyBlitz; 04-30-2012 at 06:59 PM.

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    [QUOTE=JetPotato;4454943]I was the first to post how comical it is that you're so concerned with what the right-biased media is up to these days and seemingly unconcerned about what the left-based media has been up to for far longer than NewsCorp ever existed. They were the blueprint in fact that enabled this in the first place.

    Like [B]every post you place here[/B], you don't ever attempt any objectivity whatsoever. We get it, you're angry at the right ("Murdoch, Christie WHARGLEBARGLE!") and don't care that they're no different than the left. [B]It's still amusing to me[/B].[/QUOTE]

    Here is what is amusing to me;

    I have posted plently of responses where I was critical of democrats including threads where I took the president to task. The topics ranged from military activity and spending to the president's passive ways upon entering the white house. All you have to do is look it up using the tools here on JI. Making definitive statements that are flawed is a form of bias as well.

    On the topic of the News Corp scandal [B]it is what it is[/B]. This is a story that is real and unfolding before our eyes. The idea that I need to acknowledge that MSNBC is biased every time I post an article about the News Corp scandal is like saying that conservatives had to mention watergate every time they made a statement about Bill Clinton during the Clinton scandal. :rolleyes:
    Last edited by intelligentjetsfan; 05-01-2012 at 09:23 AM.

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    By the way, here is an update to the NewsCorp scandal published today. Before clicking on the link please remember; all of the media is biased.


    [url]http://worldnews.msnbc.msn.com/_news/2012/05/01/11481154-rupert-murdoch-not-a-fit-person-to-run-major-firm-uk-lawmakers-say?lite[/url]
    Last edited by intelligentjetsfan; 05-01-2012 at 08:07 AM.

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    [QUOTE=intelligentjetsfan;4455644]By the way, here is an update to the NewsCorp scandal published today. Before clicking on the link please remember; all of the media is biased.


    [url]http://worldnews.msnbc.msn.com/_news/2012/05/01/11481154-rupert-murdoch-not-a-fit-person-to-run-major-firm-uk-lawmakers-say?lite[/url][/QUOTE]

    Oh look! A link from MSNBC. Guess you were checking out their site. I bet it's really objective. I'll pass on reading it.

    Know why else I'll pass? Because as someone who [I]truly[/I] accepts that FoxNews and MSNBC and the like are not true news outlets, but rather purposely biased entertainment programs, I'm not concerned with this story. At all. Not any more that I would be about a scandal on the set of American Idol. I don't watch either outlet, so I don't give a crap. If you're stupid enough to be influenced by these networks, then their existence isn't to blame, you are. Idiots will always be idiots. Nothing you can do to change that.

    Seems to me the only people who concerned with this are people with the opposite agenda. It's meaningless. There really is no other reason to be so upset about it. If NewsCorp is just a joke to you, then you should be easily able to turn it off and ignore it.

    Are you this mad about the fact that there are some people that still watch pro wrestling, even though it's fake?

  18. #18
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    [QUOTE=JetPotato;4455700]Oh look! A link from MSNBC. Guess you were checking out their site. I bet it's really objective. I'll pass on reading it.

    Know why else I'll pass? Because as someone who [I]truly[/I] accepts that FoxNews and MSNBC and the like are not true news outlets, but rather purposely biased entertainment programs, I'm not concerned with this story. At all. Not any more that I would be about a scandal on the set of American Idol. I don't watch either outlet, so I don't give a crap. If you're stupid enough to be influenced by these networks, then their existence isn't to blame, you are. Idiots will always be idiots. Nothing you can do to change that.

    Seems to me the only people who concerned with this are people with the opposite agenda. It's meaningless. There really is no other reason to be so upset about it. If NewsCorp is just a joke to you, then you should be easily able to turn it off and ignore it.

    [B]Are you this mad about the fact that there are some people that still watch pro wrestling, even though it's fake[/B]?[/QUOTE]

    If I remember correctly the WWE officially changed their status from sports to entertainment. So, as an example, let News Corp change Fox News to Fox Entertainment and then I will have no issue.

    I am truly saddened by the fact that you think this story is meaningless. I mean that. The main stream media has to act as an impartial referee to the government and its interests. The degree that it fails on this front determines the degree of failure of the democracy itself. The main stream media in this country has always been biased. But News Corp has taken a failing media and sent it into the gutter. The writing was on the wall when Murdoch took over Fox. All one had to do was look at his history with the media outlets overseas before he bought fox.

    There is nothing more important to a democracy then the media. That is why I pay attention to the media, certainly not for the news. Putting your head in the sand does not make it go away. Its a nice fairy tale to believe that the average citizen will be smart enough to overcome a biased media to understand what is happening. But human nature and history shows us that is simply not reality.
    Last edited by intelligentjetsfan; 05-01-2012 at 09:24 AM.

  19. #19
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    [QUOTE=intelligentjetsfan;4455644]By the way, here is an update to the NewsCorp scandal published today. Before clicking on the link please remember; all of the media is biased.


    [url]http://worldnews.msnbc.msn.com/_news/2012/05/01/11481154-rupert-murdoch-not-a-fit-person-to-run-major-firm-uk-lawmakers-say?lite[/url][/QUOTE]

    LMAO you are so transparent.

    Btw, you've only criticized Democrats and outlets like MSNBC when prompted and called out on it. I don't recall you ever starting a thread about the hypocrisy or dishonesty on the left.

  20. #20
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    [QUOTE=intelligentjetsfan;4455726]
    I am truly saddened by the fact that you think this story is meaningless. [/QUOTE]

    It is sad. But true.

    [QUOTE=intelligentjetsfan;4455726]
    I mean that. The main stream media has to act as an impartial referee to the government and its interests. [/QUOTE]

    It isn't. Fact of life.

    [QUOTE=intelligentjetsfan;4455726]
    The degree that it fails on this front determines the degree of failure of the democracy itself. The main stream media in this country has always been biased. But News Corp has taken a failing media and sent it into the gutter. The writing was on the wall when Murdoch took over Fox. All one had to do was look at his history with the media outlets overseas before he bought fox.[/QUOTE]

    Pretending it wasn't already in the gutter is your issue. NewsCorp exists as is as a reaction to the left's version of the gutter. Murdoch saw a model that worked and filled a void for a different part of the population. He was just better at it, and now the left is pissed.

    [QUOTE=intelligentjetsfan;4455726]
    There is nothing more important to a democracy then the media. [/QUOTE]

    Important, but not the "most". The definition of media has changed, mainly as a response to our culture. People are hungry for extremes. So that's what they get. It sells. It doesn't exist to inform as you seem to naively believe. It exists to sell advertising space.

    [QUOTE=intelligentjetsfan;4455726]
    That is why I pay attention to the media, certainly not for the news. Putting your head in the sand does not make it go away. [/QUOTE]

    Your head is not in the sand when you ignore FoxNews and MSNBC and search out actual facts. Quite the opposite.

    [QUOTE=intelligentjetsfan;4455726]
    Its a nice fairy tale to believe that the average citizen will be smart enough to overcome a biased media to understand what is happening. But human nature and history shows us that is simply not reality.[/QUOTE]

    I'm under no such belief. It's my belief that the average citizen is dumb as a box of rocks. We get dumber as a society with each passing generation. Spoiled and dumb. Idiocracy lived. Nothing I can do to change that, I can only equip myself to survive by educating myself and ignoring the nonsense. The majority of those dummies out there, that's going to be their problem. Not mine.

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