Chicken Little Was Right The Bskyb (Deal) Is Falling

Rupert Murdoch may have shut down his 168-year-old London tabloid, the News of the World , over the weekend, but the scandal that had consumed the newspaper continued to burn in other parts of his media empire. Most significantly it appears to have doomed Murdoch's bid to acquire the 61 percent of satellite broadcaster BSkyB that he doesn't already own. Addressing Murdoch via a BBC interview show earlier today (Monday), Deputy Prime Minister Nick Clegg said, "Do the decent thing, and reconsider, think again about your bid for BSkyB." If Murdoch doesn't voluntarily withdraw his bid, it seemed clear that he will be blocked by British regulators or perhaps even by a vote of Parliament. In a BBC interview, Labor leader Ed Miliband said, "I say this to the prime minister candidly. Over the next 72 hours I hope he changes his position on this because I don't want to force this to a vote of the House of Commons." In an interview with Reuters, Alex DeGroote, an analyst with the U.K. stock brokerage/investment bank Panmure Gordon said, "We believe the deal is all but dead." On the other hand, BTIG media analyst Richard Greenfield wrote, "We continue to believe News Corp will ultimately end up acquiring 100 percent of BSkyB; however, we could envision the transaction taking another year or more to occur." On Sunday Murdoch flew to London to assess the damage that the scandal has inflicted on his media empire and to contain it. Earlier in the day, Britain's Guardian newspaper reported that longtime Murdoch adviser Les Hinton will likely be questioned about whether he saw a 2007 internal company memo indicating that phone hacking by News of the World reporters was more extensive than the company had admitted. Hinton, who at the time headed News International, the umbrella group for Murdoch's U.K. newspapers, has continued to hold to the party line that the hacking had been limited to one "rogue reporter" working with a private detective. The London Independent quoted a source as saying that the internal report amounts to a "ticking time bomb" that supports the charge that there was a deliberate cover-up by executives of News International of the hacking activity. Meanwhile, Assistant Commissioner of the Metropolitan Police John Yates, took a 180-degree turn over the weekend, admitting that he felt "massive regret" over not opening Scotland Yard's inquiry into the phone hacking after police received evidence that it was more widespread than initially believed. He told the London Sunday Telegraph that his decision not to reopen the probe had been "a pretty crap one." Scotland Yard has been accused of "looking the other way" when confronted with the hacking charges in order to court favor with News of the World reporters, who sometimes provided leads for its investigators (and payments, too, if some allegations are to be believed). "My byword has always been you look after the victims and the job will always resolve itself. I always put the victim first but here I didn't follow my principle and that is my greatest regret," he said.

11/07/2011


Contactmusic

Tags: Rupert Murdoch - Hope - Stock - The Deal

Advertisement

More Rupert Murdoch

Sky Buy Up The Production Company Behind Benefits Street And The Great British Bake Off

BSkyB has made a significant purchase, prising independent company Love Productions from the grasp of terrestrial TV channels.The deal sees BSkyB own a 70% stake...

Jennifer Lawrence Stuns In Blue Velvet At The World Premiere of 'X-Men: Days Of Future Past' - Part 4

Jennifer Lawrence looked breath-taking in blue velvet at the world premiere of 'X-Men: Days Of Future Past' held at the Jacob Javits Center in New...

The Most Expensive Celebrity Divorces Of All Time

It’s been great to see Elin Nordegren has finally been moving on since her 2010 split with golf pro Tiger Woods. Nordegren has recently been...

Wendi Deng Murdoch Besotted With Tony Blair?

Wendi Deng Murdoch, the former wife of media mogul Rupert Murdoch, was seemingly infatuated with former British Prime Minister Tony Blair. In a love letter...

Advertisement

Rupert Murdoch And Third Wife Reach Divorce Settlement

Rupert Murdoch and his third wife Wendi Deng have finally come to a settlement on their divorce.The pair officially ended their 14 year marriage in...

Sky Advert Featuring Bruce Willis Banned From UK TV

A Sky advert starring Bruce Willis has been banned in the UK by the Advertising Standards Authority (ASA). The organisation claim the advert is not...

Two Weeks Before News Corp. Split, Rupert Murdoch Is Divorcing Wendi Deng

News Corp. CEO Rupert Murdoch filed for divorce from his third wife Wendi Deng Murdoch this Thursday. While the announcement came just two weeks before...

In The Midst Of Business Turmoil, Rupert Murdoch Is Also Divorcing His Wife

The past two years have been filled with turmoil for Rupert Murdoch and it’s far from over – as his media conglomerate splits into two...

Advertisement

Comments

Rupert Murdoch Newsletter

Subscribe to this news alert service to receive news and reviews on Rupert Murdoch

Unsubscribe | Unsubscribe All