MediaFile

Murdoch daughter disses dad

February 25, 2009

Courtesy of Richard Siklos, Fortune’s media writer extraordinaire, who just posted this on the website on Tuesday:

“In the weeks that Rupert Murdoch was locked in unsuccessful negotiations to keep his longtime No. 2 at News Corp., the media baron also had to accept his daughter Elisabeth’s decision to turn down a spot on the company’s board, sources told Fortune.”

That’s exciting, from a soap-opera-meets-financial-news angle, because Murdoch is letting longtime right-hand man Peter Chernin leave the company, in part because the media baron has a sense of familial duty. That is to say, many people say he wants his children to take over the company. The most likely choice is his son James, 36, who is active in the company’s UK and Asian operations. Having said that, Elisabeth is no slouch in the media department.

Here’s Siklos again:

On the one hand she has a sense of duty and is one of four grown Murdoch children who will one day inherit the family’s controlling votes. But she also has a conflict of interest with Shine, the big U.K. production company she has built up over nearly seven years. Under U.K. broadcast regulations, Liz Murdoch’s presence on the News Corp. board would have rendered Shine illegible for the 25% of programming budgets that big British broadcasters like the BBC and Channel 4 are required to spend on independent production houses that have no links to broadcasters. Two people close to Murdoch said that this pool of funding represents a large proportion of Shine’s business, and that there are other advantages to being an independent producer that allow Shine to more easily retain the rights to formats it creates. Being on the News Corp. board would be a conflict for Shine because News controls British Sky Broadcasting, the big U.K. satellite TV business, as well as numerous Sky and Fox TV channels that air there. Liz Murdoch owns 63% of Shine and another big backer is Sony Pictures Entertainment, which has 20%.

Dad should understand. After all, it’s just business.

Comments
2 comments so far | RSS Comments RSS

Murdoch’s children should oust the old crocodile and take over running the companies. Murdoch’s politics and policies are out of step with new American realities, and he is making powerful enemies in a position to act against him. For example, following on the Post’s cartoon depicting President Obama as a chimpanzee and Murdoch’s belated and mealy mouthed grudging apology that contained a criticism of the President’s stimulus legislation, rising anger has generated a movement to boycott the New York Post. Stay tuned.

 

WHY CAN’T PEOPLE JUST STAY OUT OF THERE FAMILY BUSINESS.
I AM A GENERAL CONTRACTOR AND HAVE WORKED FOR THE FAMILY FOR YEARS.
THEY ARE GOOD PEOPLE.

 

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