201 replies to this topic

[Todd Gross]

Interesting:
Phone hacking: 'Rupert Murdoch tells Rebekah Brooks to travel the world’

Rebekah Brooks will not comment on claims she is still drawing a News International salary.

A big song and dance was made of Rebekah Brooks’s belated decision to resign as the chief executive of News International as the phone-hacking scandal engulfed Rupert Murdoch’s empire, but it has not had any great effect upon her standard of living. I am reliably informed that she remains on the company payroll.

“My understanding is that Rupert has told her to travel the world on him for a year and then he will find a job for her when the scandal has died down,” whispers my informant.

When I call News International to inquire if Brooks is still on the payroll, they refer me to her personal publicist at Bell Pottinger. “We’re offering no comment on your query regarding Rebekah,” Steve Double tells me, helpfully.

Yes, travel the world and go somewhere with no extradition...

[David Meadows]

Labour Party deputy leader Harriet Harman said Morgan had questions to answer over the extent of phone hacking within Britain's media industry.

Dammit, why did She have to get involved? Now I have to support Morgan on principle

[David Chapman]

Interesting:
Phone hacking: 'Rupert Murdoch tells Rebekah Brooks to travel the world'

Yes, travel the world and go somewhere with no extradition...

Presumably she will learn Kung Fu?

[Todd Gross]

Presumably she will learn Kung Fu?

For her sake, ninja stealth techniques.

[Martin Smith]

Presumably she will learn Kung Fu?

She will travel the world helping people. Where an editor has to fact-check one of their paper's stories, she'll be there to stop them. When an executive has to admit knowledge and culpability for the actions of subordinate, she'll be there to help pass the buck. When a gormless idiot publicly admits to a crime on television, she'll be there, backtracking along with them.

[Todd Gross]

Murdoch is about to have his American Inquisition:
Murdoch to face Wall Street on News Corp earnings call

(Reuters) - News Corp is taking a risk in putting boss Rupert Murdoch, famous for his off-script comments, on the media conglomerate's quarterly earnings call on Wednesday with succession questions sure to be asked.

Murdoch, 80, will be speaking to Wall Street for the first time since the phone hacking scandal in Britain, and the issue of succession planning at the global media empire is certain to be raised, according to people familiar with the company.

It will be Murdoch's first appearance on an earnings conference call since last August, and Wall Street wants to know if he is any more willing to hand over the CEO reins to trusted lieutenant Chase Carey, currently deputy chairman.

The issue of succession has come to the fore since Murdoch, chairman and chief executive, appeared overwhelmed at a British parliamentary hearing last month on the hacking tactics of his now-closed News of the World paper.

At the heart of the issue is whether Murdoch's son and heir apparent James has been too badly tainted by the scandal at the British tabloid, which ultimately reported to him as head of News Corp's European businesses.

There are also questions about the veracity of the younger Murdoch's testimony to British lawmakers, which may yet do his reputation and succession hopes more harm.

"There is an understanding internally with senior management that the succession question has become an issue," said a person familiar with internal discussions ahead of a News Corp board meeting on Tuesday.

Larry Haverty of Gabelli Multimedia Funds -- who owns 195,000 Class A shares and 40,000 Class B shares of News Corp -- said the company would benefit from "ring-fencing this scandal."

Rupert Murdoch is expected to acknowledge some of the recent troubles in his prepared remarks, but he will not issue a new 'mea culpa' like the one he gave to the British parliament, according to the person familiar with the planning. The source was not permitted to talk publicly on the matter.

The conference call will take place after a board meeting on Tuesday in Los Angeles.

Collins Stewart analyst Thomas Eagan said investors he spoke with were very focused on succession questions.

"It would be helpful for him to lay out a strategy and we need to hear more about Chase Carey," Eagan said. "Could they break up the chairman and chief executive roles?"

Carey, the News Corp chief operating officer, is respected by investors and analysts as a skilled operator who keeps the company running as the senior Murdoch focuses on pet projects.

DIVIDEND INCREASE?

The quarterly results themselves are expected to be solid, boosted by the performance of News Corp's U.S. cable and broadcast television networks.

Analysts, on average, forecast quarterly profit of 29 cents a share, versus 33 cents a year ago, on revenue growth of 4.3 percent to $8.46 billion, according to Thomson Reuters I/B/E/S.

The company will likely try to focus Wednesday's conference call on its financials, but it is unlikely to ever get away from the scandal even as its British newspaper unit is responsible for less than 5 percent of operating profits.

Murdoch is known for making off-the-cuff comments, such as when he told analysts that News Corp intended to make the website of the Wall Street Journal free. He made the comments before a full business analysis, which ultimately concluded that WSJ.com should remain a paid site.

"If Murdoch's on the call, it will help more than it will hurt," said Standard & Poor's equity analyst Tuna Amobi. "He can speak with the best authority on the succession plan."

Since the controversy, News Corp's corporate governance has been put under a microscope -- particularly its board, which has been criticized for being too cozy with the Murdochs.

Under the leadership of independent director Viet Dinh, the board has tried to change the perception that it is crammed with family members and corporate insiders. On Friday, Dinh announced that Murdoch's daughter Elizabeth would not be joining the board as had previously been planned.

Some analysts expect the board to authorize another increase in News Corp's dividend, following the July 12 lifting of its share buyback program to $5 billion.

"I think the board will likely be more proactive than they have been in asking for additional capital allocation, possibly an increase in dividend yield, which is currently just 1 percent. Time Warner Inc is around 3 percent while Walt Disney Co is around 1.14 percent," said Collins Stewart's Eagan.

[Sanjay]

Although this story has quietened down drastically, there are still arrests being made:

New arrest in phone-hacking inquiry

A 61-year-old man has been arrested on suspicion of phone hacking, Scotland Yard has said.

The BBC understands he is former News of the World news editor, Greg Miskiw.

He was arrested after visiting a police station by appointment by officers from the Metropolitan Police's hacking investigation, Operation Weeting.

He was arrested on suspicion of unlawful interception of communications and conspiring to intercept communications.

He is the 12th person to be arrested since the start of the inquiry.

Operation Weeting was established in January, following fresh allegations about phone hacking involving the News of the World newspaper.

I'm sure it'll live up again when the evidence and statements of the people arrested come out (and possibly implicate others).

[Martin Smith]

The Sun on Sunday still hasn't appeared yet, which is at least a bonus.

[Hei Katy Zei]

You would think by now they would simply hold there hands up and say weve done wrong and this is exactly what we did , instead there just so insincere kinda makes me wonder how much worse this crisis actually is.

I think that they're afraid the extent of their censorship of the news will get out, and everyone will be pissed off, because they've been pushing the notion of free press for so long.

This whole "free press" thing.... wadda loada shite. You should see how badly the news in Canada is censored. And people think their free... *facepalm*

[garjones]

I think that they're afraid the extent of their censorship of the news will get out, and everyone will be pissed off, because they've been pushing the notion of free press for so long.

This whole "free press" thing.... wadda loada shite. You should see how badly the news in Canada is censored. And people think their free... *facepalm*

The UK press is amazingly free. Other than libel cases in court they are entirely self regulated.

That element should not be disregarded though, it was the Guardian, as part of the UK press that chased and took this story into the public eye amongst much pushback. The response should hopefully not be about strict regulation but rather overall ownership and competition.

People have said frequently that Murdoch and News Corp shoudn't care about the NotW because it is such an insignificant part of their revenue. That's true but it was a very significant part of their political influence as the most read paper in the land. The views of the paper, the apparent threats to polticians he can't get on regulated TV. TV makes the money but when the TV business was losing $2m a day it was the newspapers that rescued it with postive reviews of the shows, free ads and even free dishes. The vast profits of BSkyB could not have happened without the papers.

This is a frequent tactic in business, Tesco cheap baked beans lose money but get people in the shop, all of haute couture in fashion makes no money. It's brings people in, Glamour magazine say the show is a success and people buy the belts and wallets that they can afford with Louis Vitton written on them, it sets an agenda for another line of the corporation to make money.

There's the myth of Murdoch's sentimental love of newspapers, his ownership of the Times created loads of middle class cricket fans to sign up to his sports channels. The direct profit of NotW isn't that relevant compared to its influence and editorials. Even Hugh Grant said they laid off him with with the Divine Brown story because he was starring in a Fox film at the time. It was The Mirror that got the exclusive and ruined him.

[Todd Gross]

Some News Corp news:
Murdoch Vows To "Get To The Bottom" Of Hacking Scandal And "Put Things Right"

Rupert Murdoch says that he and the News Corp board believe that "I should continue" to be chairman and CEO. But he added that COO "Chase Carey and I run this company as a team." Murdoch said in a conference call with analysts and reporters that "I've run this company for more than 50 years" and reporting tactics including the phone hacking discovered at News Of The World "have no place at News Corp." Murdoch amplified on a prepared comment in the company's just-released earnings statement for the June quarter. "While it has been a good quarter from a financial point of view," he says, "our company has faced challenges in recent weeks relating to our London tabloid, News Of The World. We are acting decisively in the matter and will do whatever is necessary to prevent something like this from ever occurring again." He adds that "it is important to note that there has been no material impact on our other operations."

Translation: Kill everyone involved.

News Corp Earnings Short Of Expectations For June Quarter

The media giant says that losses from Myspace took a toll on earnings in the June quarter. The company had net profits of $683M, down 22% from the period last year, on revenues of $8.96B, up 10.5%. Earnings came in at 26 cents a share -- lower than the 30 cents that analysts expected. The company says that its film and TV operations all did well -- the company lost $245M, or 10 cents a share, from its sale of Myspace. But revenues beat the consensus forecast of $8.46B. Cable network revenues rose 14.5% to $2.15B with help from higher fees that cable and satellite operators pay for the channels. Filmed entertainment was up 13.6% to $2.03B with strong results from Rio, Black Swan and The Chronicles of Narnia: Voyage Of The Dawn Treader. Ad sales and retransmission consent revenues helped the broadcast TV unit grow 7% to $1.04B.

[Todd Gross]

News Corp.: Phone Hacking Probes Could 'Damage Our Reputation,’ ‘Impair Ability to Conduct Business’

In its annual report filed Monday, Rupert Murdoch's conglomerate gave little new detail about the phone hacking scandal, but provided some latest language on its possible effects.

NEW YORK – Rupert Murdoch’s News Corp. reiterated in its annual report Monday that the conglomerate is “cooperating fully” with U.S. and U.K. investigations into the phone hacking scandal, but also warned that “it is possible that these proceedings could damage our reputation and might impair our ability to conduct our business.

What will the final cost of the scandal be? News Corp. said it is still too early to say. “The company is not able to predict the ultimate outcome or cost associated with these investigations,” it said in the annual report. “Violations of law may result in civil, administrative or criminal fines or penalties.”

However, it did say that “any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the company in connection with the various proceedings could affect the company’s results of operations and financial condition.”

The latest language on the phone hacking situation came in the annual report's section on legal matters that News Corp. faces.

Echoing similar disclosures in recent weeks, the regulatory filing said that “U.K. and U.S. regulators and governmental authorities are conducting investigations after allegations of phone hacking and inappropriate payments to police at our former publication, News of the World, and other related matters, including investigations into whether similar conduct may have occurred at the company’s subsidiaries outside of the U.K.”

"might impair our ability to conduct our business" = "We can't hack phones anymore to get stories."

[Paul F]

Phone hacking: News of the World reporter's letter reveals cover-up

Disgraced royal correspondent Clive Goodman's letter says phone hacking was 'widely discussed' at NoW meetings

Rupert Murdoch, James Murdoch and their former editor Andy Coulson all face embarrassing new allegations of dishonesty and cover-up after the publication of an explosive letter written by the News of the World's disgraced royal correspondent, Clive Goodman.

In the letter, which was written four years ago but published only on Tuesday, Goodman claims that phone hacking was "widely discussed" at editorial meetings at the paper until Coulson himself banned further references to it; that Coulson offered to let him keep his job if he agreed not to implicate the paper in hacking when he came to court; and that his own hacking was carried out with "the full knowledge and support" of other senior journalists, whom he named.

The claims are acutely troubling for the prime minister, David Cameron, who hired Coulson as his media adviser on the basis that he knew nothing about phone hacking. And they confront Rupert and James Murdoch with the humiliating prospect of being recalled to parliament to justify the evidence which they gave last month on the aftermath of Goodman's allegations. In a separate letter, one of the Murdochs' own law firms claim that parts of that evidence were variously "hard to credit", "self-serving" and "inaccurate and misleading".

Goodman's claims also raise serious questions about Rupert Murdoch's close friend and adviser, Les Hinton, who was sent a copy of the letter but failed to pass it to police and who then led a cast of senior Murdoch personnel in telling parliament that they believed Andy Coulson knew nothing about the interception of the voicemail of public figures and that Goodman was the only journalist involved.

More at Link

[garjones]

Two versions of Goodman's letter were provided to the committee. One which was supplied by Harbottle and Lewis has been redacted to remove the names of journalists, at the request of police. The other, which was supplied by News International, has been redacted to remove not only the names but also all references to hacking being discussed in Coulson's editorial meetings and to Coulson's offer to keep Goodman on staff if he agreed not to implicate the paper.

It's just falling apart around them now isn't it? How are they going to defend that? It can be nothing but them censoring the letter to cover Coulson's arse.

[Sanjay]

And so...

James Murdoch is "likely" to be recalled before the Commons Culture, Media and Sport Committee as part of its inquiry into phone hacking at the News of the World, Labour MP Tom Watson has said.

Amid continued questions about the extent of Mr Murdoch's knowledge of the hacking, the Sunday tabloid's former editor, Colin Myler, and ex-legal manager, Tom Crone, are to be asked to appear in September.

After a meeting of the committee's MPs, Mr Watson said: "We are trying to find out if Parliament was misled and all of us around the table were determined to do that.

"It starts with Colin Myler and Tom Crone, and it will be likely that we will take (James) Murdoch back."

He added that further evidence would be published at 1pm on Tuesday which would contain "devastating revelations" giving the company in general "questions to answer".

[garjones]

An interesting story on News Corp (mis)behaviour in the USA:

Five years ago Robert Emmel was enjoying the American dream. He lived in a detached house in a suburb of Atlanta, Georgia, drove a BMW, and earned $140,000 a year as an accounts director in a highly successful advertising company called News America Marketing.

Today, Emmel is described by his lawyers as destitute. Jobless and in debt, he was discharged from bankruptcy last year. He does occasional consultancy work that last month brought in $500, and this month, court documents show, will probably produce nothing. His wife's earnings raise monthly household income to about $3,000 – half their outgoings.

This is a cautionary tale about what can happen to someone who dares to become a corporate whistleblower. Or, more specifically, someone who incurs the wrath of News Corporation, the media empire owned by Rupert Murdoch, of which News America forms a part.

Emmel's lawyer, Philip Hilder, has had a ringside seat at the gradual unravelling of his client's life. A former federal prosecutor based in Houston, Texas, Hilder is well versed in whistleblower cases having represented Sherron Watkins, who helped uncover the Enron scandal. Hilder said: "News America has engaged in Rambo litigation tactics. They have a scorched earth policy, and it's taken a huge toll on him."

News Corp has devoted the efforts of up to 29 lawyers to pursuing Emmel personally, at a cost estimated at more than $2m. Emmel, by contrast, has relied on two lawyers, Hilder and Marc Garber in Atlanta, working for no pay since January 2009.

......................

By 2006 Emmel said he was increasingly concerned about what he alleged were improper practices on the part of his employers. He alleged that News America was engaging in "criminal conduct against competitors" and using "deceptive and illegal business practices" to defraud its retailer customers out of money owed. He claimed he had "substantial oral and documentary evidence" to support his allegation that the company had defrauded its own customers, used anti-competitive techniques against rival companies, and fraudulently inflated its reported earnings unbeknown to its shareholders.

Quite a long story so read the rest here: http://www.guardian....-murdoch-empire

It really makes you think that breaking the law was endemic in News Corp, with them thinking their financial clout could overwhelm anything in court. What Tom Watson and the Guardian have revealed has shown the counter to that is investigation and revealing the truth to the general public.

[David Meadows]

Today, Emmel is described by his lawyers as destitute. Jobless and in debt, he was discharged from bankruptcy last year. He does occasional consultancy work that last month brought in $500, and this month, court documents show, will probably produce nothing. His wife's earnings raise monthly household income to about $3,000 – half their outgoings.

A monthly household income of $3000 is "destitute"???

I am definitely doing something wrong with my life

[garjones]

Another one nicked:

James Desborough, an award-winning reporter at the former News of the World newspaper, has been arrested by officers investigating the phone-hacking scandal.

Desborough was arrested on suspicion of conspiring to intercept communications, contrary to section 1 (1) of the Criminal Law Act 1977 after arriving at a south London police station on Thursday morning at 10.30am. He had arrived at the station by appointment for questioning about criminal activities at the paper.

The allegations are believed to relate to events prior to Desborough being promoted to be the newspaper's Los Angeles-based US editor in April 2009.

He was given the job less than a month after winning the British Press Award for showbusiness reporter of the year.

His move to the US makes his arrest, the 13th made by Operation Weeting, particularly significant. If Desborough was involved in hacking while in Britain, as police appear to believe he was, it raises the question of whether he practised those techniques in the US – and if so, whether he was the first and only News of the World journalist in the US to do so.

http://www.guardian.co.uk/media/2011/aug/18/phone-hacking-news-of-the-world

[Steve Sensible]

No doubt those who praised him will be the first to condemn him.

At the 2009 British Press Awards ceremony, Desborough was praised by judges for his series of "uncompromising scoops which mean no celebrity with secrets can sleep easy".

Desborough continued to win plaudits after his move to America. Ian Halperin, a Hollywood author, described him as someone who "never gets his facts wrong. He's a rock solid reporter." Hollyscope, an online site, also praised Desborough for "seem[ing] to have information that not even close family members … know."

[David Meadows]

At the 2009 British Press Awards ceremony, Desborough was praised by judges for his series of "uncompromising scoops which mean no celebrity with secrets can sleep easy".

Even without illegal phone hacking, that shouldn't a cause for praise.