November 29, 2012 -- Updated 1624 GMT (0024 HKT)
Rupert Murdoch claimed he had been "humbled" by the phone-hacking scandal, which led him to close the News Of The World.
STORY HIGHLIGHTS
- Rupert Murdoch claimed to have been "humbled" by the phone-hacking scandal
- Revelations about journalistic practises at the News of the World led to the tabloid's closure
- Since the scandal, News Corp. has decided to split its publishing assets into separate firm
Editor's note: James Robinson is a media commentator and author. He is a former media editor of the Observer and media correspondent at the Guardian, where he covered the phone-hacking story for two years.
(CNN) -- Should the press be more heavily regulated? Share your thoughts here.
Could the phone-hacking scandal prove to be a blessing in disguise for Rupert Murdoch?
A year ago that would
have seemed a ridiculous notion. News Corp.'s UK newspaper arm almost
collapsed last summer under the weight of a story that dominated
Britain's news agenda for months, prompting a sting of resignations and a
high-profile public inquiry.
James Robinson is a commentator, author, and former media editor of the Observer.
It was a conflagration that briefly threatened to engulf the entire company, forcing a fire-fighting Rupert Murdoch to appear before British lawmakers in London and declare: "This is the most humble day of my life."
Yet since News Corp.
responded to the crisis by confirming in the spring it would spin off
its publishing assets into a separate company, the media conglomerate's
stock has soared. News Corp.'s share price has risen by 20% since July
2011, adding more than $5 billion to the value of the company. Insiders
say executives are surprised by the positive way Wall Street received
its decision to hive off its print titles.
They shouldn't be. The phone-hacking scandal, which resulted in the closure of UK Sunday tabloid News of the World,
forced Murdoch to do what frustrated investors had been urging him to
do for years: jettison the company's troublesome newspaper titles, which
include the Times of London and the Sun.
Leveson: Must be change in British press
News Corp. to become two companies
Rupert Murdoch: 'I was not aware'
The surge in the
company's share price reflects optimism about the future of the company
once it is freed from the deadweight of print in 2013.
The Wall Street Journal,
which News Corp. also owns, is profitable because it has figured out a
way to make money online by charging for content, but other titles are
struggling. Shareholders in the U.S. have long viewed Murdoch's
attachment to his London-based papers, in particular, as an expensive
indulgence. They approve of News Corp.'s renewed focus on broadcasting, a
part of the media industry that is growing.
Murdoch has spent money
taking full control of Australia's largest pay-TV operator and acquiring
the local network that screens New York Yankees games. Cable TV veteran
Chase Carey, a reassuring presence, is firmly established as Murdoch's
second in command. The constant chatter about which member of the
Murdoch family will be shoe-horned into the CEO's chair to succeed the
old man has fallen quiet, at least for now.
A Management and
Standards Committee set up to deal with the fallout from the
phone-hacking affair has been cooperating with Scotland Yard, uncovering
evidence of illegal payments to public officials, but its work is
nearly complete.
It feels as if the
company might finally be putting phone-hacking behind it. Murdoch is
enthused about the creation of "pubco" and bullish about its prospects,
convinced there is still plenty of money to be made in print. A senior
company source describes him as "obsessed" with the business. He is
planning a spending spree once the company is established, and is busy
finalizing a string of executive appointments. The company is expected
to be run by Robert Thomson, an Australian who once edited the Times of
London and now runs the Journal, and there is talk of bringing forward
the stock market flotation.
The business has
recovered its momentum and Murdoch has rediscovered his mojo. His
frequent and combative tweets, covering subjects from British press
regulation to China's uncertain future, is testament to that.
Rupert Murdoch: Phone hacking is 'lazy'
UK panel: Murdoch 'turned blind eye'
UK phone-hacking inquiry opens
Yet those who regard the
81-year-old's enthusiasm for newspapers as an enduring weakness may
ultimately be proved right. The new publishing business will be given a
large amount of cash by News Corp., a generous dowry to ensure a good
start in life, cash that shareholders may feel would be more effectively
deployed elsewhere.
It is believed Murdoch
tried to persuade his oldest son Lachlan to return to the family fold as
chief executive of the publishing business, a reminder that succession
is the thorniest issue of all at News Corp. His second son James, who
was badly damaged by the phone-hacking affair, is quietly running Fox
Networks in the U.S. and reporting directly to Carey, but no one doubts
his father wants him to run the company when he finally steps aside.
That could prompt a showdown with investors that Murdoch Sr. may no
longer be strong enough to win.
Phone-hacking damaged
Murdoch and the specter of an FBI investigation into alleged payments to
foreign officials, a criminal offense under the Foreign and Corrupt
Practices Act, still casts a long shadow over News Corp. The company has
not commented on any potential investigation.
The most likely outcome
is a settlement with the U.S. authorities that will cost the company
millions of dollars, but it would be wrong to assume the hacking saga
will end there.
In April last year, James Murdoch,
who was then in charge of News Corp.'s European and Asian businesses,
told a conference the company had successfully put phone-hacking "in a
box." Three weeks later, three of Murdoch's key executives had resigned
and the News of the World had been dramatically shuttered. Murdoch has
not been held personally responsible for phone-hacking but further
criticism could undermine his authority.
The Leveson Inquiry is
critical of the News of the World and says there was a failure of
governance at News International. But it also says there is no evidence
Rupert Murdoch knew phone-hacking was rife, or that he orchestrated a
cover-up. Leveson is less equivocal about James Murdoch, saying there
are aspects of his evidence "that cause me some concern". It stops short
of criticizing the younger Murdoch further, citing ongoing police
investigations into criminality at News International, but the verdict
is not a favorable one for James, and it may harm his chance of
succeeding his father.
That is unwelcome news for Rupert, who desperately wants to keep his business empire in the family.
COPY
http://edition.cnn.com/
Nenhum comentário:
Postar um comentário