Sunday, July 22, 2012

Murdoch Resigns From Newspaper Boards

Ahead of the split of News Corp of broadcasting from print businesses, Rupert Murdoch has decided to resign from a number of British Newspaper boards.  "According to company officials who claim to be familiar with his thinking, the scandal has convinced Mr. Murdoch that the British newspapers, including The Times and The Sunday Times, which have been racking up tens of millions of dollars in losses in recent years, have become a financial and reputational drag on the News Corporation’s other holdings."  Whether it is also about removing himself further from the earlier hacking charges leveled on his publications, one can only assume that there is some connection.  The more separate he can become the lesser the stink.
Certainly these charges have seriously affected his ability to grow his media empire.  Rather than consider purchasing BSkyB, Murdoch has become a seller.  "The abandonment of a $12 billion offer to acquire the remaining shares in the company, announced as the phone hacking scandal grew last year, was part of the heavy price the Murdochs have paid for the tabloid scandal."  Once the empire has been pared back and the hacking drama has dies down, perhaps their investment in US businesses will increase.

No comments:

Post a Comment