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Murdoch Struggles to Maintain Control of News Corp. as Resignations, Arrests and Other Repercussions Play Out

Jul 18, 2011  •  Post A Comment

As News Corp.’s U.K. phone-hacking inquiry continues to play out, Rupert Murdoch is struggling to control his company’s destiny, reports Bloomberg.

Meanwhile, the scandal claimed another high-profile casualty among British law enforcement, with the resignation of John Yates, deputy commissioner of London’s Metropolitan Police, The New York Times reported.

As previously reported, a key development in the scandal was the arrest last week of one of the company’s former top executives, Neil Wallis, a former editor of News of the World. Meanwhile, Les Hinton, CEO of Dow Jones and a Murdoch employee for 52 years, resigned his post late last week.

The probe has caused independent directors of New York-based News Corp. to question the company’s response to the inquiry and whether a leadership change is needed, Bloomberg reported.

According to the Bloomberg piece: "Some directors said Murdoch, the company’s 80-year-old chairman and chief executive officer, appeared to be in denial over the fallout from the scandal in an interview he gave last week to The Wall Street Journal, one of News Corp.’s newspapers."

Murdoch, chief executive, and his 38-year-old son, James Murdoch, are spending most of their time with advisers preparing for a U.K. hearing before a parliamentary committee, the story says. The probe involves allegations that News of the World, which was recently shuttered, hacked into the phones of people including a murder victim, terror victims, politicians and celebrities.

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