Monday, 18 July 2011

What Murdoch faces now!

This is an interesting take of what the New Yorker sees as the Murdoch's future:
In the United States, News Corp., as an American company, will, among other things, have to explain why it has not violated the Foreign Corrupt Practices Act, which makes it unlawful to pay bribes to government officials overseas—a proscription that includes the London police; whether the New York Post (or any of the company’s British newspapers) hacked into the mail or phone calls of celebrities in this country or of the families of 9/11 victims; and why their unethical behavior does not disqualify them under F.C.C.(Federal Communications Commission) rules that require that those who license TV stations must be of solid moral character. Les Hinton, the head of Dow Jones and one of Murdoch’s senior executives in this country, has already resigned.

Murdoch’s influence with government officials here and abroad will not help him escape this time. In the current environment, will politicians, even those who courted him in the past, want be seen at his side, or risk their careers to come to his aid? The dam has sprung multiple leaks, and Rupert Murdoch doesn’t have enough fingers to stop the gushing water.

This looks like Murdoch's control over News Corporation is becoming increasingly fragile to such an extent that they could well lose control over the parent company. I can't see News Corp putting the Fox licence at risk for the sake of protecting Rupert and James especially if James Murdoch is charged with corruption in the UK which would seem to be sufficient grounds for the US Department of Justice to move against News Corp under the Foreign Corrupt Practices Act.

How long will News Corps shareholders allow the toxic Murdoch brand to dominate their investment before they take action?

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