The fall of an Empire...hopefully

[Ryan_m_b]

The Murdoch empire has had to drop its bid for 100% ownership of British Sky Broadcasting (http://www.bbc.co.uk/news/business-14142307)! Combined with the closure of the News of the World paper (http://www.bbc.co.uk/news/uk-14071634), the new judicial inquiry (http://www.bbc.co.uk/news/uk-politics-14131555) and possible investigations in the US (http://www.bbc.co.uk/news/world-us-canada-14132168) and Australia (http://www.bbc.co.uk/news/world-asia-pacific-14134613) is this the end of the company that bought us the appalling Fox news and authorised despicable journalist tactics?

[Ivan Seeking]

The Murdoch empire has had to drop its bid for 100% ownership of British Sky Broadcasting (http://www.bbc.co.uk/news/business-14142307)! Combined with the closure of the News of the World paper (http://www.bbc.co.uk/news/uk-14071634), the new judicial inquiry (http://www.bbc.co.uk/news/uk-politics-14131555) and possible investigations in the US (http://www.bbc.co.uk/news/world-us-canada-14132168) and Australia (http://www.bbc.co.uk/news/world-asia-pacific-14134613) is this the end of the company that bought us the appalling Fox news and authorised despicable journalist tactics?

Holding my breath... The WSJ [not to mention NatGeo] may still be salvageable.

Did you see where Fox News can track its model all the way back to the Nixon Admin?

[daveb]

Despicable journalist tactics have been around since at least Hearst, and probably even before that.

Despite that, just because an investigation might begin, it doesn't mean the corporation will be destroyed. I could be wrong but I don't think the government has the authority to shut it down, nor penalize it enough that it is forced to shut down (or rather, that this would ever pass Supreme Court muster, despite the government's efforts to do so).

[Ryan_m_b]

Despicable journalist tactics have been around since at least Hearst, and probably even before that.

Despite that, just because an investigation might begin, it doesn't mean the corporation will be destroyed. I could be wrong but I don't think the government has the authority to shut it down, nor penalize it enough that it is forced to shut down (or rather, that this would ever pass Supreme Court muster, despite the government's efforts to do so).

I didn't mean a political shut down (that would violate freedom of the press in a horrible way) but if the police inquiry shows the corruption to rise high up there will be a lot of key arrests, leading to protracted and public prosecutions which will have a huge effect on the value of News Corp. So far this week it has lost over $5 billion in shares! 10 days ago Murdoch was on the verge of getting 100% ownership of Britain's biggest cable service, now he has lost that bid, lost his best selling news paper and faces a long inquiry.

The News of the World collapsed because in the space of a few days public outcry was so huge that almost all the advertises pulled their investments. When the public, politicians, business and a hefty chunk of the media put their weight behind a motion anything can happen. It doesn't require some sort of authoritarian intervention.

[daveb]

While I agree with you in principle, I think that no matter what happens, there will always be certain people who will support NewsCorp no matter what.

[Ivan Seeking]

While I agree with you in principle, I think that no matter what happens, there will always be certain people who will support NewsCorp no matter what.

The key is that the entire Murdoch empire is now subject to credibility and perception problems. For example, in British power circles, the once revered Murdoch is now considered to be radioactive. This is why he was forced to withdraw his bid.

[Proton Soup]

in america, this looks like a british problem. FOX viewers here won't care. those who hated FOX will continue to hate FOX.

[Ryan_m_b]

Unless a US probe reveals the allegations over the attempted phone hacking of 9/11 victims is true.

[Proton Soup]

Unless a US probe reveals the allegations over the attempted phone hacking of 9/11 victims is true.

i thought that came from a brit tabloid, though.

[AlephZero]

i thought that came from a brit tabloid, though.

Nope. See http://www.bbc.co.uk/news/world-us-canada-14132168

But when your lawyers start jumping ship, you must be REALLY in trouble ... "News International's legal manager Tom Crone, who primarily worked at the News of the World and on the Sun, has left the company". http://www.bbc.co.uk/news/business-14142307

[wuliheron]

Fox news media is dedicated to the professional wrestling style of trash talk and such scandals are no different from the occasional steroid controversy or a fight that turns out to be fixed. It can be a setback, but it is just one of the routine hazards of the industry and not the end of the world. They rely heavily on the fact that their audiences are tuning in specifically to suspend their disbelief and be entertained.

Nor is this even vaguely new. Over a hundred years ago the American mass media became so infamous for sensationalism the term "yellow journalism" was invented. We invented the libel laws and whatnot to bring a little order to the fray, but such things just force the industry to find more creative ways to promote hate mongering and sensationalism.

[Ivan Seeking]

Fox news media is dedicated to the professional wrestling style of trash talk and such scandals are no different from the occasional steroid controversy or a fight that turns out to be fixed. It can be a setback, but it is just one of the routine hazards of the industry and not the end of the world. They rely heavily on the fact that their audiences are tuning in specifically to suspend their disbelief and be entertained.

Nor is this even vaguely new. Over a hundred years ago the American mass media became so infamous for sensationalism the term "yellow journalism" was invented. We invented the libel laws and whatnot to bring a little order to the fray, but such things just force the industry to find more creative ways to promote hate mongering and sensationalism.

True to a point, but in another sense I think not. The modern media, and in particular the Fox/Limbaugh/Beck/Hate radio phenomena, bring to mind the early days of the media when aliens attacked Grover's Mill, no game shows were rigged, commercials told the Gospel truth, and TV people and families represented reality. Eventually people wise up. Anything that helps to legitimately discredit this plague on society is a good thing.

[Proton Soup]

Nope. See http://www.bbc.co.uk/news/world-us-canada-14132168

But when your lawyers start jumping ship, you must be REALLY in trouble ... "News International's legal manager Tom Crone, who primarily worked at the News of the World and on the Sun, has left the company". http://www.bbc.co.uk/news/business-14142307

no, the allegation is that News of the World sought to do the hack. so i think that it will still depend on how deep the investigation goes.
http://www.nytimes.com/2011/07/15/nyregion/fbi-opens-inquiry-into-hacking-of-911-victims.html

The inquiry was prompted in part by a letter from Representative Peter T. King, a Long Island Republican, to Robert S. Mueller III, the F.B.I. director, in which he asked that the bureau immediately open an investigation of News Corporation, citing news reports that journalists working for its subsidiary, The News of the World, had tried to obtain the phone records of 9/11 victims through bribery and unauthorized wiretapping, the people said.

[Ryan_m_b]

A senator was interviewed last night on a British news channel, I don't remember his name but he was suggesting that US anti-bribery laws apply to US companies regardless of where the bribery occurs. One of the aspects of this scandal is that News International (the British arm of News Corp) allegedly paid off police officers for information.

If it comes out that this is true the senator was suggesting that News Corp would be in trouble.

[wuliheron]

True to a point, but in another sense I think not. The modern media, and in particular the Fox/Limbaugh/Beck/Hate radio phenomena, bring to mind the early days of the media when aliens attacked Grover's Mill, no game shows were rigged, commercials told the Gospel truth, and TV people and families represented reality. Eventually people wise up. Anything that helps to legitimately discredit this plague on society is a good thing.

In case you haven't noticed its all but impossible to discredit UFOs, the Bermuda Triangle, and Elvis in the eyes of their supporters. At best it is possible to bring the crowd back down to earth for short periods using techniques like Obama's recent rope-a-dope of Trump, but even that is only possible by at least occasionally playing to the demand of the crowd that you participate in the circus.

As I see it the recent "no new taxes" controversy over the budget has a much better chance of striking any kind of real blow against the 3 ring circus. It is the last serious taunt possible in this decades long pro wrestling diatribe and the crowd is now ready to demand to see some real wrestling and an end to the trash talk. Something which a deeply divided republican party simply cannot produce as it slowly paints itself into a corner as a dog that is all bark and no real bite.

[cobalt124]

This is one thing that needed to happen:

http://www.bbc.co.uk/news/uk-14166162

We should now at least be rid of Rupert Murdochs influence over the British Government and put to an end the apparent collusion between them both and the police.

[wuliheron]

This is one thing that needed to happen:

http://www.bbc.co.uk/news/uk-14166162

We should now at least be rid of Rupert Murdochs influence over the British Government and put to an end the apparent collusion between them both and the police.


They don't make industrial strength cleaners strong enough to completely get rid of that kind of scum, but he's certainly been knocked down to size! Now if we can just do the same thing here in the US it we might stand a chance of restoring just the slightest bit of sanity to our political process for awhile.

[AlephZero]

A senator was interviewed last night on a British news channel, I don't remember his name but he was suggesting that US anti-bribery laws apply to US companies regardless of where the bribery occurs.

There's no "suggestion". That's what the US law says...

One of the aspects of this scandal is that News International (the British arm of News Corp) allegedly paid off police officers for information.

... and according to the UK Financial Times, the current FBI strategy is to wait for the UK investigations to do the leg work before they consider whether the US law was broken. There is a separate US legal issue about (not) reporting the payments in the company accounts, even if they were legal.

BTW another top lawyer has jumped - Newcorp's general counsel Lon Jacobs (source: FT).

A resignation a day keeps the .... hmm, not sure. But I guess if you want to appease the gods by sacrificing virgins, Mr Brooks might not be the ideal choice.

[Ryan_m_b]

There's no "suggestion". That's what the US law says...

I'm neither a US citizen nor an expert so I didn't want to presume that the news or senator was telling the literal truth.

... and according to the UK Financial Times, the current FBI strategy is to wait for the UK investigations to do the leg work before they consider whether the US law was broken. There is a separate US legal issue about (not) reporting the payments in the company accounts, even if they were legal.

BTW another top lawyer has jumped - Newcorp's general counsel Lon Jacobs (source: FT).

A resignation a day keeps the .... hmm, not sure. But I guess if you want to appease the gods by sacrificing virgins, Mr Brooks might not be the ideal choice.

I'm left wondering if the severance packages these people are going to receive is enough to silence whatever it is some of them may know...

[AlephZero]

Just when "another day, another resignation" was getting tedious, something new for the conspiracy theorists to get their teeth into: http://www.bbc.co.uk/news/uk-14194623

[Ivan Seeking]

Just when "another day, another resignation" was getting tedious, something new for the conspiracy theorists to get their teeth into: http://www.bbc.co.uk/news/uk-14194623

I don't see why that would cause any suspicion. :rolleyes:

[Ryan_m_b]

The Murdochs are appearing before Parliament today as is Rebekah Brooks and there will be a special assembly of the House of Commons to debate the issue, I'm sure the live Parliament TV channel will never have seen such ratings!

[Ryan_m_b]

For those interested the inquiry has started http://www.bbc.co.uk/news/uk-politics-14193124

[lisab]

I found this article interesting. I had never before heard of The Corporate Library.

The firm grades companies' governance from A to F, and for the past six years News Corp. has received an F -- "only because there is no lower grade," says Nell Minow, who co-founded The Corporate Library in 1999 on the premise that governance "can be rated like bonds, from triple-A to junk." News Corp.'s overall risk, says the prophetic report: "very high." Risk of class-action securities litigation: "very high." Scandal-related lawsuits are already piling up.

http://management.fortune.cnn.com/2011/07/19/the-trembling-at-news-corp-has-only-begun/?iid=MPM