“Wednesday, March 28, 2012, is one day when The AFR, the world’s most expensive financial daily, is certainly worth its $3 cover price.”
Stephen Mayne is referring to The Australian Financial Review‘s front-page splash by Neil Chenoweth which chronicle the activities of a rogue division of News Corp which “… promoted a wave of high-tech piracy in Australia that damaged Austar, Optus and Foxtel as News was trying to take control of the pay TV industry”.
The scheme eventually left behind a $5 billion windfall for News Corp and a trail of destruction for its pay-TV competitors.
In the context of the phone hacking scandal in Britain, these revelations — essentially the Australian angle run in tandem with the BBC Panorama program that aired overnight — are explosive and widen allegations of corporate misbehaviour far beyond a couple of rogue journalists and a couple of rogue newspapers to ensnare News Corp’s real bread and butter: pay TV.
But when will these kinds of allegations begin to hit the company where it hurts — the share price?
As Mayne points out in Crikey today: “Amazingly, News Corp’s share price has soared ever higher in recent months and jumped another 10c to $19.48 this morning, valuing the company at $US51 billion. The Murdoch family has a debt-free $6.5 billion stake in News Corp and appear to be financially unscathed from the British scandal.”
Perhaps these latest revelations will prove to be a tipping point, given that the “family’s biggest single earner over the years has been US programming pumped out through the world’s most lucrative global pay-TV distribution channels.”
Thanks to the work of Chenoweth and Panorama, News Corp no longer has the luxury of amputating their UK newspaper arm to make their problems disappear.
Lets hope the ACCC dont give Austar to Murdoch before this slimey mess is investigated properly.
Much against my better nature I just purchased Foxtel for its Aussie Rules. I’m spewing now! Wonder what the AFL thinks of all this?
Stephen Conroy knew what he was doing when he precluded Sky News and in particular News Ltd from bidding for the AN overseas network. The organisation headed up by the Murdochs most likely would not pass any serious probity check given their record in the UK.
With outstanding information out there world wide now I would think passing a probity check for a licence would present a problem. And perhaps given time and some more court action entry into some countries may be problematic too. Edward James
NEWS FLASH – Limited News & Mudorc are cheating, deceitful, dishonest, manipulative and biased!
Hooda thunk it?