in case you missed it… Murdoch’s newspaper crisis causes jitters in US | Reuters http://t.co/XIATR4k
Murdoch’s newspaper crisis causes jitters in US
NEW YORK/WASHINGTON, July 13 (Reuters) – When Rupert Murdoch swooped in to buy the Wall Street Journal in 2007, it sparked fears that the venerable newspaper brand would suffer by being housed under the same roof as News Corp’s (NWSA.O: Quote, Profile, Research, Stock Buzz) tabloids.
Those concerns have again arisen as the widening scandal over phone-hacking at Murdoch’s British newspapers threatens to spill over to U.S. shores.
“I think the UK hacking scandal has the potential to damage the Wall Street Journal’s reputation,” said Jay Ottaway, whose family owned 6.2 percent of Wall Street Journal publisher Dow Jones & Co before it was sold to News Corp.
“However, I think it would be unfair since the quality of the people and reporting at the Wall Street Journal is much higher (than) at other News Corp newspapers and television properties,” he told Reuters by email. The Ottaway family had voted against the sale of Dow Jones to Murdoch.
Beyond fears about contaminating the brand of one of the most-respected newspapers in the United States, the controversy could also taint Murdoch’s broader media business in the United States, which ranges from print to television to films.
Three U.S. lawmakers on Wednesday urged the Department of Justice and the Securities and Exchange Commission to look into whether News Corp broke a U.S. law banning payment of bribes to foreign officials.
And some media pundits, including CourtTV founder Steve Brill, have raised questions over whether News Corp’s U.S. broadcast license could be revoked, given that federal communications law requires owners of TV stations to be “of good character.”
Analysis: Murdoch’s newspaper crisis causes jitters in U.S | Reuters http://t.co/AdgtKHn
Lawmakers seek probes of News Corp | Reuters http://t.co/8mvbIEn
U.S. lawmakers seek probes of News Corp
WASHINGTON (Reuters) – U.S. lawmakers urged federal officials to investigate whether News Corp broke a law banning bribes to foreign officials, increasing transatlantic pressure on Rupert Murdoch’s media empire.
As Murdoch withdrew his bid for broadcaster BSkyB (BSY.L: Quote, Profile, Research) in Britain on Wednesday under a hail of criticism over a alleged crimes at his newspapers, three U.S. senators called for probes by the Justice Department and the Securities and Exchange Commission.
Former journalists at News Corp’s now-closed News of the World paper in Britain have been accused of paying London police officers for information.
The U.S. Foreign Corrupt Practices Act (FCPA) prohibits payments intended to influence any act or decision of a foreign official.
Democratic Senators Barbara Boxer, Jay Rockefeller and Frank Lautenberg on Wednesday asked Attorney General Eric Holder and SEC Chairman Mary Schapiro to look into potential FCPA violations.
“The reported allegations against News Corporation are very serious and indicate potentially thousands of victims and a pattern of illegal activity. It is important to ensure that no United States laws were broken and no United States citizens were victimized,” Rockefeller and Boxer wrote in a letter to Holder and Schapiro.
As a U.S.-based company, News Corp and its employees are subject to the anti-bribery provisions of the FCPA, Lautenberg said. If bribes were made and not properly recorded in the company’s books, this would also be a violation, he added.
Analysis: Murdoch’s newspaper crisis causes jitters in U.S.
NEW YORK/WASHINGTON (Reuters) – When Rupert Murdoch swooped in to buy the Wall Street Journal in 2007, it sparked fears that the venerable newspaper brand would suffer by being housed under the same roof as News Corp’s tabloids.
Those concerns have again arisen as the widening scandal over phone-hacking at Murdoch’s British newspapers threatens to spill over to U.S. shores.
“I think the UK hacking scandal has the potential to damage the Wall Street Journal’s reputation,” said Jay Ottaway, whose family owned 6.2 percent of Wall Street Journal publisher Dow Jones & Co before it was sold to News Corp.
“However, I think it would be unfair since the quality of the people and reporting at the Wall Street Journal is much higher then at other News Corp newspapers and television properties,” he told Reuters by email.
Beyond fears about contaminating the brand of one of the most-respected newspapers in the United States, the controversy could also taint Murdoch’s broader media business in the United States, which ranges from print to television to films.
Already, three U.S. lawmakers on Wednesday urged the Department of Justice and the Securities and Exchange Commission to look into whether News Corp broke a U.S. law banning payment of bribes to foreign officials.
And some media pundits, including CourtTV founder Steve Brill, have raised questions over whether News Corp’s U.S. broadcast license could be revoked, given that federal communications law requires owners of TV stations to be “of good character.”
Lawmakers seek probes of News Corp
WASHINGTON (Reuters) – U.S. lawmakers urged federal officials to investigate whether News Corp broke a law banning bribes to foreign officials, increasing transatlantic pressure on Rupert Murdoch’s media empire.
As Murdoch withdrew his bid for broadcaster BSkyB in Britain on Wednesday under a hail of criticism over a alleged crimes at his newspapers, three U.S. senators called for probes by the Justice Department and the Securities and Exchange Commission.
Former journalists at News Corp’s now-closed News of the World paper in Britain have been accused of paying London police officers for information.
The U.S. Foreign Corrupt Practices Act (FCPA) prohibits payments intended to influence any act or decision of a foreign official.
Democratic Senators Barbara Boxer, Jay Rockefeller and Frank Lautenberg on Wednesday asked Attorney General Eric Holder and SEC Chairman Mary Schapiro to look into potential FCPA violations.
“The reported allegations against News Corporation are very serious and indicate potentially thousands of victims and a pattern of illegal activity. It is important to ensure that no United States laws were broken and no United States citizens were victimized,” Rockefeller and Boxer wrote in a letter to Holder and Schapiro.
As a U.S.-based company, News Corp and its employees are subject to the anti-bribery provisions of the FCPA, Lautenberg said. If bribes were made and not properly recorded in the company’s books, this would also be a violation, he added.
Senators call for DOJ, SEC probe into News Corp | Reuters http://t.co/d8krFgX
US senators call for DOJ, SEC probe into News Corp
WASHINGTON, July 13 (Reuters) – U.S. lawmakers called on Wednesday for the Justice Department and Securities and Exchange Commission to investigate whether News Corp (NWSA.O: Quote, Profile, Research, Stock Buzz) broke a U.S. law banning bribes to foreign officials.
Senators Barbara Boxer and John Rockefeller asked Attorney General Eric Holder and SEC Chairman Mary Schapiro to look into a potential violation of the Foreign Corrupt Practices Act after the telephone hacking scandal at one of News Corp’s British newspapers.
“The reported allegations against News Corporation are very serious and indicate potentially thousands of victims and a pattern of illegal activity. It is important to ensure that no United States laws were broken and no United States citizens were victimized,” the senators wrote in a letter to Holder and Schapiro.
The Foreign Corrupt Practices Act prohibits payments intended to influence any act or decision of a foreign official.
The senators also called on authorities to investigate reports News Corp also illegally accessed telephone records of victims of the Sept. 11, 2001, attacks.
A Justice Department spokeswoman said they would review the letter as part of standard practice, but that did not mean an investigation would be initiated.
News Corp, in addition to its newspapers in Britain, owns the Wall Street Journal, Fox Broadcasting, the New York Post and other media properties in the United States.
Murdoch, savaged in parliament, pulls BSkyB bid
WASHINGTON (Reuters) – U.S. lawmakers called on Wednesday for the Justice Department and Securities and Exchange Commission to investigate whether News Corp broke a U.S. law banning bribes to foreign officials.
Senators Barbara Boxer and John Rockefeller asked Attorney General Eric Holder and SEC Chairman Mary Schapiro to look into a potential violation of the Foreign Corrupt Practices Act after the telephone hacking scandal at one of News Corp’s British newspapers.
“The reported allegations against News Corporation are very serious and indicate potentially thousands of victims and a pattern of illegal activity. It is important to ensure that no United States laws were broken and no United States citizens were victimized,” the senators wrote in a letter to Holder and Schapiro.
The Foreign Corrupt Practices Act prohibits payments intended to influence any act or decision of a foreign official.
The senators also called on authorities to investigate reports News Corp also illegally accessed telephone records of victims of the September 11, 2001, attacks.
A Justice Department spokeswoman said they would review the letter as part of standard practice, but that did not mean an investigation would be initiated.
News Corp, in addition to its newspapers in Britain, owns the Wall Street Journal, Fox Broadcasting, the New York Post and other media properties in the United States.


