News Corp In Effect Withdraws BSkyB Bid? Has UK Phone-Hacking Scandal Sunk Rupert Murdoch’s Biggest Deal?
Shareholders Sue News Corp Over Scandal: Corporate Governance “Culture Run Amok”
Investors are clearly concerned that News Corp doesn’t have the appetite anymore to pursue its BSkyB bid because it looks unable to get the regulatory approval necessary for the 100% takeover. Not only did News Corp shares plunge 7.1% on Monday, but also BSkyB shares dropped 7.5% in London as a result of the widening UK phone-hacking scandal. Many investors fear that there’s a lot more bad news to come for News Corp as investigators delve into News Of The World’s newsgathering practices. “We are highly troubled by the way this scandal has played out over the last several years,” Cowen & Co analyst Doug Creutz says. “At the least, senior News Corp management appears to have been guilty of severe ignorance of the extent of the unethical activity despite having had ample time to uncover the truth.” But some analysts see a silver lining in the scandal. If News Corp scraps the BSkyB acquisition, then it increases the chance that Rupert Murdoch will give cash to shareholders — probably by buying back News Corp stock. And if he is just delaying the deal, then he may end up paying less than he would now for the 60% of BSkyB that he doesn’t already own. “We think the deal will eventually be approved, but it may be delayed several months” says bond analyst Dave Novosel of Gimme Credit. “However, we expect that News Corporation will be forced to fire some executives to cool the recent furor surrounding the hacking of phones. We think it is unlikely that James Murdoch is one of them, although some reports are suggesting that it a possibility.”


The sharks smell blook in the water! Epic Greek tragedy will begin to unfold w/ Ruperrtr’s fall fom grace. Just watch.
The UK socialist government wants Rupert to have BSkyB, but because of this scandal ( tabloid news ) they want to save face with their citizens, so as much as they know Rupert Murdoch is the most qualified, and best company to handle ” Britain’s biggest news “, they’re acting ” self righteous ” right now…..let’s talk about ” who really killed princess Diana ?”……Rupert owns so many news outlets and NONE of the other is tainted, but one stupid tabloid news, and was done by only a few employees, every company has low life employees working for them, but it doesn’t mean the top bosses were working in collusion with them! This story is all being fabricated, and exaggerated by the venomous people for probably political gains….look at all of the other news outlets that Rupert own that are ” upstanding, honorable “…..Rupert is the best candidate for BSkyB! UK let’s not twist the truth and make a small story into sensational news and all convoluted ! Let’s keep things all in clear perspective here and clarity!
Oh do be quiet, you pro-Murdoch hack.
Is that you, Rebekah? The scandal has now moved across to The Sun, where the British Prime Minister’s personal files, including medical records relating to his disabled son, were accessed and used against him. You were editing that paper at this time, as well, but, of course you know nothing about it. What a wonderful job: all the power and none of the responsibility.
This was not just a few bad apples. There are over 50,000 people who were hacked including deceased soldiers, people killed by the 7/7 bombing, and a young girl killed by a serial killer. The NotW scumbag deleted some of that young girls phone messages because her phone mailbox was full, which made family and friends think the Milly was alive. It takes more than a few bad apples to hack the phones of over 50,000 people. On top of that the people who were in charge didn’t lose their jobs but the people who did the day to day work did when James Murdoch shut down NotW to make it look like he was cleaning house when all we was doing is covering things up. Then there is also over $200,000 in bribes NotW employees paid out to Metropolitan police officers to illegally obtain information about people. That money did not come out of the pockets of the reporters, it was reimbursed to them by their company, which means lawyers and accountants also knew about it. To top it all off, James Murdoch has explicitly stated that News International misled Parliament, as in lied to it. I’m fairly certain if NPR, under oath, lied to Congress people would be calling for their heads and in this case lying to Parliament is only a small sliver of this huge scandal, which has more and more facts coming out everyday so to declare Murdoch the best person to run BSkyB before all the facts are out in the open means you are nothing but a ditto head shill who thinks the mighty Murdoch and his empire can do no wrong. Guess what? They did lots and lots of wrong and there’s a pretty good chance that they hacked the phones of 9/11 survivors and the phones of friends and families of 9/11 victims. Of course, I’m sure that was the result of just a few bad apples again. And finally, British laws don’t care if the top executives were directly working in collusion with the hackers; all they have to prove is that they didn’t take efforts to insure that such behavior didn’t happen, which is going to be impossible to prove because James Murdoch has already publicly declared that they did not do enough and that they screwed up.