Murdoch in Free Fall - Credibility Gone Billions to Follow

Murdoch in Free Fall - Credibility Gone Billions to Follow



By Michael Collins

Rupert and James Murdoch conjured up a fictional report that serves as the fig leaf used to cover the naughty secret of News Corporation --- they never investigated phone hacking in general and they never tried to clean house.

The House of Commons committee investigating Rupert Murdoch's United Kingdom media properties released new evidence this week. The evidence elaborates on themes generated at the committee hearing of July 19 and adds new information to the toxic brew that threatens to drown the largest media company in the world. (Images: Hubert Burda Media, L, World Economic Forum)

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An imminent risk is the highly profitable BSkyB cable network, the largest broadcaster in the UK. The are over 10 million subscribers and close to 5.9 billion Sterling in revenue ($9.7 billion) for the 12 month period ending June, 2010. Pre-tax profits hit 875 million Sterling ($1.4 billion). News Corporation owns 39% of the network and planned to purchase the remaining 61% of the company, pending regulatory approval. That seemed a lock in January. After the Guardian's July 4 expose of NoW's phone hacking of the by then dead kidnap victim, Milly Dowler, things began to collapse. Just days after the Guardian article by Nick Davies, News Corporation announced it was withdrawing it's bid for the remaining 61% of the company.

Link: http://www.opednews.com/articles/Murdoch-in-Free-Fall--Cre-by-Michael-Collins-110819-835.html

At stake now is the 39% ownership share currently held by News Corporation. By UK rules, the owner of major media properties needs to be a “fit and proper person.”

Damian Collins is a Conservative MP and member of the committee that heard evidence from the Murdochs on July 19. Yesterday, Bloomberg News reported Collins saying that a “contempt of Parliament” finding against Murdoch would threaten his role as Chairman of the highly profitable BSkyB UK entertainment network. Collins said such a finding, “would raise the question about whether someone can pass the fit-and- proper person tests required to hold a broadcasting license if they have been found to be in contempt of Parliament.”
http://www.themoneyparty.org/main/?p=2444

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