Opinion

Nicholas Wapshott

Rupert Murdoch’s troubles are far from over

Nicholas Wapshott
Jul 1, 2014 06:00 UTC

News Corporation CEO Rupert Murdoch leaves his flat with Rebekah Brooks, Chief Executive of News International,  in central London

The acquittal of Rupert Murdoch’s favorite executive, the flame-haired Rebekah Brooks, on charges of phone hacking and destroying the evidence might have marked the final act in one of the most bruising and expensive chapters in the history of News Corp.

It hasn’t turned out that way.

The $85 million that Murdoch paid to help keep his protégée out of jail has done little more than stoke the fires of resentment against his company in Britain. It also reminded U.S. federal authorities of the likelihood that similar crimes have been committed in America.

With convictions secured in Britain for bribing public officials, there is already enough evidence for U.S. authorities to pursue News Corp. under the Foreign Corrupt Practices Act. Which may be why the FBI requisitioned 80,000 emails from News Corp.’s New York headquarters.

Former News of the World editor Andy Coulson leaves the Old Bailey Courthouse in LondonThere is little worse for a media company than becoming a front-page story. For the past nine years, Murdoch’s empire has been dogged by accusations that it had been running a criminal operation to bribe public officials and steal messages from cell phones to feed the lucrative scandal sheets that funded News Corp.’s growth from the get-go.

The London investigation led to a number of trials that proved Murdoch’s staff paid government employees for information and hacked phones.

Contemplating life after Murdoch

Nicholas Wapshott
Jul 10, 2013 16:14 UTC

Rupert Murdoch has been summoned back to explain to British lawmakers comments he made at a private meeting with his London tabloid journalists. It seems that whatever regrets he has expressed in public about the phone-hacking and police bribery scandal that has so far cost his company $57.5 million, in private he thinks the affair has been overblown. There have been 126 arrests so far, with six convictions, a further 42 awaiting trial, and up to 10 more awaiting charges.

The Fox boss told his reporters and editors, all facing jail time, he didn’t see why the police were making such a fuss about “next to nothing”; that “payments for news tips from cops? That’s been going on a hundred years”; and promised them — though he was careful not to run afoul of the law — he would give them their jobs back “even if you’re convicted and get six months, or whatever.” He also pledged to use his newspapers to exact revenge on the “incompetent” police for pursuing the investigation so vigorously.

Little noticed in accounts of the secretly recorded conversation, an editor said Murdoch’s promises were all very well but asked him what guarantees they would have of being reinstated if he was no longer around, i.e. if Murdoch was dead?

The crumbling of the Murdoch dynasty

Nicholas Wapshott
Dec 4, 2012 22:59 UTC
Rupert Murdoch has had a rough few weeks. He had to race to Melbourne, Australia, to visit his 103-year-old mother, Dame Elisabeth, who has died in Australia.* There is nothing like the death of your mother to remind you of your own mortality.

Then last month the political party he supports and largely owns lost the election. When you have Sarah Palin, Mike Huckabee, Roger Ailes, Karl Rove, John Bolton, Liz Cheney, William Kristol, Dick Morris, Oliver North, Rick Santorum, and Newt Gingrich on the books and have all your media properties conduct a virulent, ad hominem campaign against the president, then watch the Republicans lose so convincingly, it must be hard to know where you went wrong.

Then on Monday Murdoch announced his reluctant splitting of News Corp. in two, dividing the company between News Corp.–containing the mostly hard-copy waning press properties he dabbles in as an expensive hobby–and Fox Group, made up of the money-making media properties, like the Fox movie studio, the Fox TV network, and Fox News, that the company’s non-family and therefore non-voting shareholders prefer. The restructuring was forced upon Murdoch in the wake of the revelation that phone hacking had become quotidian at his British newspapers, a crime of which, despite his addiction to editorial micromanagement, he has always denied all knowledge. Had he not taken the initiative and divided his company, the report by Lord Justice Leveson on corruption in the British press might have demanded a more painful remedy.

To stem the damage being done to his company’s profit centers, and to appease one of his biggest sleeping shareholders, Saudi Prince Alwaleed bin Talal, Murdoch closed the News of the World, the scandal rag he used to intimidate those who did not toe his line, and he lost his chief executive in London, Rebekah Brooks, who awaits trial for interfering with the course of justice, among other charges. Almost all the other 86 arrested so far, except those they are accused of bribing, are former Murdoch employees.

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