Showing posts with label News Corp. Show all posts
Showing posts with label News Corp. Show all posts

Friday, 15 July 2011

Murdoch agrees to talk

The News Corp phone-hacking scandal has gone global. The FBI has announced that it is launching an investigation into allegations that Rupert Murdoch’s corporation hacked into the mobile phones of 9/11 victims. If it’s true, it’s a moral outrage of huge proportions – a terrible insult to American honour. It would seriously damage Murdoch’s reputation in the US and reduce his very profitable share of the media market. But the political context is subtly different to the UK scandal, and that will shape the way it plays out. The comparison some are already making to Watergate is instructive in its inaccuracy. This hurts Murdoch, but not necessarily the Republican Party or conservative media in general.

Hacking into Milly Dowler’s phone was an attack on a single family. Hacking into the phones of the 9/11 victims is an assault on an entire nation. In America, the memory of the people who died on 9/11 is sacred. The invasion of their privacy not only violates wire-tapping laws but offends a much bigger, popular ethical sensibility. If it is proven true then the Murdoch brand will be irreparably harmed, and that means the collapse of an empire that reaches well beyond a seedy UK newspaper obsessed with sex and celebrity face lifts.

Part of the US empire is the irrepressible, valuable Fox News: the “fair and balanced” channel that has been sticking it to the American Left since 1996. In 2010 the network took the top 10 spots in the age 25–54 demographic and the top 12 spots among total viewers, and cable TV provides 60 per cent of News Corp’s overall profits. It’s big business, and politicians already sound determined to bring it down. For starters, Democratic Senators Frank Lautenberg and Barbara Boxer have called for Murdoch to be personally investigated under the terms of the Foreign Corrupt Practices Act for the crime of bribing English police. If found guilty, the old man could face up to $30 million in fines and 20 years in prison.

It’s tempting to presume that this is payback time for liberals sick of being called everything from Muslims to Communists by Fox News contributors for the past 15 years. Certainly, a guilty verdict would invert the Right-wing franchise’s patriotic image and probably boost the reputation and ratings of the rival MSNBC channel. News Corp gave a generation of young conservatives a platform, and that platform stands to be discredited. Obama will be pleased. His White House communications director once opinioned that, “Fox News often operates as either the research arm or the communications arm of the Republican Party”.

But it is significant that the man leading the calls for an investigation is congressman Pete King: a conservative Republican who has enjoyed positive coverage by Fox in the past. Although some liberals and Europeans will try to paint this as a GOP scandal – hence the reference to Watergate, which brought down Republican Richard Nixon – the outrage at what News Corp did is bipartisan. American news outlets have a far greater sense of separation from the political elite of their country than there is in Britain. In the UK, both parties chased the endorsement of the News of the World. Prime Ministers of left and right invited its editors to cocktail parties and sleep-overs. Its power and importance was reflected in its disturbingly close relationship with the entire political establishment, including Brown and Cameron. That is what made it the British Watergate.

In contrast, no Democrat would bother to court the support of Fox News or the New York Post. They are conservative niche media, which has excluded them from half of the US political establishment and kept them philosophically pure. And just because it fills a Right-wing niche doesn’t mean News Corp has determined the ebb and flow of conservative politics either. The Sun’s claim that it “won it” in 1992 is a sentiment that no US news outlet would understand or echo. They regard themselves as either strictly non-partisan or, in the case of Fox, something that reflects rather than sets the popular mood.

In short, there is a distance between News Corp and the Republican Party that will keep the scandal from becoming the partisan frenzy that it was in the UK. Whatever Obama’s claims to the contrary, Fox does not speak for the GOP and would never claim that kind of influence. It is a case of a private institution committing crimes against the general public; the UK’s added dimension of political culpability is missing. This is not a conservative scandal, or even a political scandal. It is simply criminal.

Source: blog.telegraph.co.uk

Thursday, 14 July 2011

Murdoch Under Pressure


Rupert Murdoch's News Corp. abruptly withdrew its bid to take over Britain's biggest satellite broadcaster Wednesday, bowing to intense pressure from lawmakers and a general public outraged over a spiraling phone-hacking scandal involving newspapers owned by the Australia-born tycoon.

"We believe 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," Chase Carey, the deputy chairman of News Corp., said in a terse statement released Wednesday afternoon in London.

The decision was a humiliating turnaround for Murdoch and for News Corp., which has been seeking government approval for months to take control of BSkyB. Owning the broadcast company would have represented a major expansion of Murdoch's already-large media empire in Britain, which includes newspapers such as the Times of London and the Sun.
Only 10 days ago, Murdoch seemed on track to receive the green light for his $12 billion bid. The British government had given strong indications it would grant permission for the takeover on the grounds that antitrust rules on media ownership would not be violated.

But opinion within Parliament and the nation has strongly turned against Murdoch amid a cascade of revelations that newspapers belonging to News International, the British subsidiary of News Corp., resorted to unethical and sometimes illegal methods to gather information on politicians, celebrities and relatives of murder victims.

To contain the fallout, News International has already shut down the News of the World, the popular weekly tabloid at the center of allegations that its reporters hacked into people's cell phones in pursuit of scoops.

The decision to withdraw the bid for BSkyB was announced only hours before lawmakers were scheduled to debate and vote on a measure calling on News Corp. to drop its attempt to take over the broadcaster. The measure was expected to pass overwhelmingly with support from all parties in the House of Commons. The extraordinary show of unity demonstrated how toxic Murdoch has become after having been one of the most politically influential men in the country through his media properties.

Despite dropping the takeover bid, News Corp. will retain its 39 percent share of BSkyB.
Earlier Wednesday, Prime Minister David Cameron thundered his disapproval of a media giant that until recently he had assiduously cultivated.

"There needs to be root-and-branch change at this entire organization," Cameron told lawmakers.

Source: sfgate.com
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