Rupert Murdoch’s Phone Hacking Headache Continues


July 14, 2011

Rupert Murdoch’s Phone Hacking Headache Continues

Rupert Murdoch’s media group News Corporation bowed to pressure from the public and the British government on Wednesday and withdrew its bid to take full control of Britain’s largest pay-television broadcaster BSkyB. It already owns 39 percent of the broadcaster.
The move leaves News Corp’s key strategy for it’s UK corporate growth in tatters. The proposed $13 billion deal has been in the works for more than a year.  News Corp will have to pay BSkyB a break fee of around $62 million after walking away from the deal.
A company statement quoted Chase Carey, News Corporation’s Deputy Chairman, President and Chief Operating Officer, as saying “We believed that the proposed acquisition of BSkyB by News Corporation would benefit both companies but it has become clear that it is too difficult to progress in this climate.”
The withdrawal from the bid for complete control of British Sky Broadcasting, represented the most severe damage inflicted so far on Mr. Murdoch’s corporate ambitions by a crisis which erupted only 10 days ago with reports that The News of the World tabloid, part of his British newspaper empire, ordered the hacking of the voice mail of Milly Dowler, a 13-year-old girl abducted and murdered in 2002.
In the US,  Senator Jay Rockefeller has asked the appropriate authorities to investigate if any journalists working for Rupert Murdoch had targeted US citizens. “I am concerned that the admitted phone hacking in London by the News Corp. may have extended to 9/11 victims or other Americans. If they did, the consequences will be severe,” he said in a statement. “The reported hacking by News Corporation newspapers against a range of individuals – including children – is offensive and a serious breach of journalistic ethics. This raises serious questions about whether the company has broken US law,” he said.
Murdoch has a high-profile in the US media , owning the New York Post, Wall Street Journal, Fox News and publisher Harper Collins.

Publisher: Salient News