News Corp, the communications firm run by media mogul Rupert Murdoch, has found itself in hot water recently as phone hacking allegations at one of his newspapers, News of the World, has raised serious questions about the journalistic ethics and standards of decency at his firm. News Corp stock has been underperforming the market since the scandal hit, trading in the $15-$16 range from a high of $19 earlier this year. Murdoch has responded to the allegations by shutting down the News of the World, and recently testified before the British Parliament that his newspapers’ indiscretions have led to ‘the most humble day of [his] life.’
Critics of Murdoch have alleged that he has finally received his comeuppance after running a newspaper that has been willing to air the dirty laundry and political secrets of those whom he has covered. Others have alleged that Murdoch has used his vast media empire to intimidate others from speaking out against him because he has such a strong presence in the press. To get an idea of what Murdoch controls, here is a list of some of News Corp’s most notable holdings: 20th Century Fox, Fox Broadcasting Company, STAR TV, Fox Sports Net, National Geographic Channel, americanidol.com, askmen.com, hulu.com, UK’s The Sun, UK’s The Times, UK’s The Sunday Times, The Daily Telegraph, The Herald Sun, Barron’s Magazine, Marketwatch, The Dow Jones News Wire, and of course, The Wall Street Journal.
Because of the ethical concerns at the British publication The News of the World, some individuals have called into question the ethics of Murdoch’s other holdings as well, and most likely Murdoch’s greatest fear is that his American holdings will take a reputational hit from his fallout with the British press. This scandal has already prevented Murdoch from buying other broadcasting networks, and it is going to be interesting to see how this scandal affects Murdoch’s influence in the coming years.
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