Thursday, July 21, 2011

NewsCorp Go Boom! July 21, 2011


The fallout of the British phone-hacking scandal has resulted in the arrest of 10 people, including Rebekah Brooks, a former News of the World editor who resigned Friday from her post as chief executive of News International, and the resignation of Les Hinton as CEO of the Dow Jones unit, which publishes The Wall Street Journal.

Murdoch's company has suffered a stock plunge, is facing questions over future leadership and is under an FBI investigation.

Now, the business ethos of another arm of News Corp. could deepen the controversy and raise eyebrows about the media mogul's entire corporate culture.

News America Marketing, an in-store coupon and newspaper ad insert marketing business, has been hauled into U.S. courts several times over unsavory practices that include hacking into the computers of competitors.

In one of the lawsuits, New Jersey-based Floorgraphics charged that News America attacked Floorgraphics directly by breaking into a password-protected computer system to acquire sensitive proprietary information, including past and future contracts.

But.. But..  How could this be?  Hacking was only limited to one "rogue" reporter at News Of The World!


With their former boss under arrest, tabloid reporters are beginning to reveal secrets of what it was like to work in Rebekah Brooks' newsrooms.


Disguises, bullying, lies dropped into copy — all were part of the pressure-cooker atmosphere that prevailed, according to former journalists who spoke to The Associated Press.

Michael Taggart, who worked at The Sun in 2003, said the paper under Brooks was marked by "ruthlessness and misogyny."

"The reporters who were prepared to subject themselves and others to the most ridicule were the ones earmarked for success," said Taggart, who now works as a consultant for London-based MRM.

Sounds "Ethical."


Rupert Murdoch's News International company has been found by a parliamentary committee to have "deliberately" tried to block a Scotland Yard criminal investigation into phone hacking at the News of the World.

The report from MPs on the all-party home affairs committee will be released on Wednesday morning. Its publication has been moved forward in time for a statement on the scandal by the prime minister, David Cameron.
..
It finds the company "deliberately" tried to "thwart" the 2005-2006 Metropolitan police investigation into phone hacking carried out by the News of the World.

See above comment. Also in green..

File Under:  Yeah; I bet he does..  Cameron "regrets" hiring scandal-hit tabloid editor  Yahoo.  Excerpts:

Prime Minister David Cameron, defending his integrity to parliament in emergency session on Wednesday, said he regretted hiring a journalist at the heart of a scandal that has rocked Britain's press, police and politics.

But in hours of stormy questioning he seemed to rally his Conservative party behind him and stopped short of bowing to demands that he apologize outright for what the Labour leader called a "catastrophic error of judgment" in appointing as his spokesman a former editor of Rupert Murdoch's News of the World.

Only if Andy Coulson, who has since resigned, should turn out to have lied about not knowing of illegal practices at his newspaper would the prime minister offer a "profound apology".

Analysts said Cameron emerged from the debate looking stronger than when he was forced to fly home early from Africa to face lawmakers who had delayed their summer recess by a day. But he left some lingering questions unanswered, notably about his role in Murdoch's takeover bid for TV network BSkyB.

What's that sound?  Maybe the loosening of more shoestrings, and the seperation of heels and insoles..  Let's see how Cameron looks this time next week, when things are in "ebb."



Online hacking group LulzSec said Monday night it had obtained a large cache of emails from the servers of News International, the News Corp. subsidiary which oversees global media baron Rupert Murdoch's British newspapers.

Along with the emails, LulzSec said it had unearthed the email logins and passwords for News International executives, including former News of the World editor Rebekah Brooks, who was arrested recently in connection to the paper's phone hacking schemes.

A Twitter account connected with the hackers said they planned to release the emails online tomorrow. (This article was written on Tuesday)  Also unearthed were phone numbers for News International officials, along with personal information about an online content editor.

Sidebar:  This is the first scandal I can think of where international cyber pranks are also involved.  Pranks of consequence..NewsCorp must deal with their advertisers, shareholders, English and American Law, Wall Street, the people who never liked them, and now, the people who always liked them, that have been betrayed.  All the while, more negative allegations continue to hemorrhage what was, just last month, the vision of a Corporation-as-Invincible-Entity.  In June, NewsCorp was bullet-proof.

Time is subjective; moving slowly for some people and events. moving quickly for others..  I'd venture to guess it's doing both for those at NewsCorp, at once a 300 mile per hour whirlwind of destruction,  and also a soundless, sterile, white room, empty, save a table and chair.. 

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