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News Corp.’s Soft Power in the U.S. (a News Corporation division twice came under US investigation)

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alp227 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-07-11 09:30 PM
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News Corp.’s Soft Power in the U.S. (a News Corporation division twice came under US investigation)
Over the last month, many Americans watched from a distance in horror or amusement as it became evident that the News Corporation regarded Britain’s legal and political institutions as its own private club.

That could never happen in the United States, right?

As it turns out, a News Corporation division has twice come under significant civil and criminal investigations in the United States, but neither inquiry went anywhere. Given what has happened in Britain with the growing phone-hacking scandal, it is worth wondering why.

Both cases involve News America Marketing, an obscure but lucrative division of the News Corporation that is a big player in the business of retail marketing, including newspaper coupon inserts and in-store promotions. The company has come under scrutiny for a pattern of conduct that includes below-cost pricing, paying customers not to do business with competitors and accusations of computer hacking.

full: http://www.nytimes.com/2011/08/08/business/media/news-corps-legal-trail-in-the-us.html?pagewanted=all
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LiberalFighter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-07-11 09:50 PM
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1. When and how much News Corp stock did Christie receive if any?
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AndyTiedye Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-07-11 10:02 PM
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2. I'd Consider the Ability to Blackmail Politicians En Masse to be Much More than "SOFT Power"
more like iron fist kind of power if you ask me.
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Uncle Joe Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-08-11 12:18 PM
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3. I wonder if these two are related and if they are, then Murdoch may never have truly wanted to sell,
he was just going through the motions, so the assumption that the "U.S. government was not in Murdoch's hip pocket" would be incorrect.



News America Marketing came to control 90 percent of the in-store advertising business, according to Fortune, aided in part by a particularly quick and favorable antitrust decision made by the Justice Department in 1997. That year, the News Corporation announced it wanted to buy Heritage Media, a big competitor, for about $754 million in stock plus $600 million in assumed debt. The News Corporation said it would sell the broadcast properties and hang onto the marketing division, which serviced 40,000 groceries and other retailers.

(snip)

It’s worth noting that less than a year later, the Justice Department division led by Mr. Klein blocked the News Corporation from selling its share of a satellite company to PrimeStar, owned by a group of cable providers, on antitrust grounds, so any suggestion that a department of the United States government was snugly in the hip pocket of Mr. Murdoch would not be correct.



Thanks for the thread, alp.

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