After 10 unrelenting days of the most ferocious and damaging global attacks on a public company that the world has ever seen, media mogul Rupert Murdoch granted this interview to his own paper, The Wall Street Journal.
In a performance that would make the old Iraqi Information Minister proud and will become legendary in PR circles, the disgraced 80-year-old News Corp executive chairman claimed the crisis was handled “extremely well in every possible way”, involving only “minor mistakes”.
As for the reputational damage in Britain, it’s “nothing that will not be recovered. We have a reputation of great good works in this country”. Huh! The more likely scenario is that News Corp will be hounded out of Britain completely.
Markets know best and News Corp shares resumed their decline today as investors fret that they are being led by a delusional dictator who has blundered on every key decision over the past 10 days.
How on earth did Rupert think he could thumb his nose at the entire British political class and declare himself unavailable for next Tuesday’s parliamentary grilling?
That’s what he first tried last night, before receiving a formal legal summons that led to a backflip and a commitment to front up after it dawned on him that such a display of contempt would have signalled the end of his ability to be a fit and proper person to hold any shares in BSkyB.
Elisabeth Murdoch has reportedly gone to war with Rebekah Brooks, telling friends she has “f-cked the company”. Indeed, Rupert’s decision to stand by the odious character known in Private Eye as the Wicked Witch of Wapping was a monumental error of judgment.
Instead, the Murdochs voluntarily walked away from a cash cow newspaper that gives News Corp considerable power in the UK. This was also a huge mistake as it effectively was a massive admission of guilt, totally contradicting years of denial.
If Rupert was going to dramatically fly into London, it should have been to fire Brooks, force favoured son James Murdoch to stand aside as chairman of BSkyB and immediately give at least $2 million dollars to Milly Dowler’s family.
Instead, he’s been pictured smiling with Brooks coming out of flash restaurants, making an astonishing contrast to those pictures of Milly Dowler’s family meeting with a clearly concerned David Cameron at 10 Downing Street.
While one of the dodgiest tabloid journalists in history remains Rupert’s chief executive in the UK, the only executive who appears to have been fired this week is long time News International lawyer Tom Crone.
Having fired his New York-based chief general counsel Lawrence Jacobs over an unrelated blunder last month, the Dirty Digger finds himself embroiled in his biggest ever legal and reputational scandal without an in-house lawyer of note.
And with the cops and politicians crawling all over allegations of cover-ups, perjury and claims of perverting the course of justice, it will be very hard for Rupert to find a UK law firm that will put its name to the sorts of threats, editorial campaigns, litigation and heavy political negotiations he usually employs in these circumstances.
The ongoing investigation reached a new level of farce yesterday when it emerged that Andy Coulson’s former deputy, Neil Wallis, had been arrested. This same bloke was paid about $50,000 to be a spin doctor for the police over the past couple of years, at the same time PC Plod was refusing to re-open is botched investigations into phone hacking. Amazing!
News Corp has traditionally exerted much control over British politicians and senior police. Now it is at war with both and cannot possibly avoid widespread convictions responding to fundamental institutional corruption that has degraded Britain’s democracy.
Indeed, where can Rupert turn for help when he is at war with all governments in the UK, the US and Australia?
Minority governments will end up proving a major problem for News Corp because it is especially despised by the junior partners in Australia and the UK, namely the Liberal Democrats and the Greens. Liberal Democrats leader and UK deputy prime minister Nick Clegg gave a speech last night calling for sweeping media reforms that are clearly targeted at undermining News Corp.
He described the atmosphere at Westminster as “a little like an end to the dictatorship when everyone suddenly discovers they were against the dictator”. This is now becoming a real possibility.
Surely News Corp’s independent directors and Rupert’s adult children can’t sit back and do nothing as Rupert’s continues with his steady stream of catastrophic strategic blunders. The performance next Tuesday represents his “last chance saloon”.
Rupert himself has rarely been questioned by independent sources in public about the hacking scandal. The last time was at the 2010 News Corp AGM when we had this exchange.
Stephen Mayne: what’s your personal view of the phone bugging issue in the UK involving Andy Coulson and Clive Goodson the former Royals reporter? There has been a lot of press about it.
Rupert Murdoch: we have very very strict rules. There was an incident more than five years ago. The person who bought a bugged phone conversation was immediately fired and in fact he subsequently went to jail. There has been two parliamentary inquiries, which have found no further evidence or any other thing at all. If anything was to come to light, we challenge people to give us evidence, and no one has been able to. If any evidence comes to light, we will take immediate action like we took before.
SM: did you read the 5000-word piece in The New York Times claiming they had spoken to no less than 12 former editors and reporters for the News of the World, confirming that the practice was widespread?
Rupert: no.
SM: you haven’t read that New York Times piece?
Rupert: no.
SM: The actual committee said in its report there was “deliberate obfuscation” by our executives, there was “collective amnesia” by the executives and you’ve just demonstrated this again, and this point …
Rupert: I’m sorry. Journalists who have been fired, who are unhappy, or work for other organisations — I don’t take them as an authority, and least of all I don’t take The New York Times as authority which is the most motivated of all.
All this from a bloke who today told The Wall Street Journal: “When I hear something going wrong, I insist on it being put right.”
This goes to the core of the problem: Rupert Murdoch has totally built News Corp around a culture of encouraging mischief making and dodgy journalism. He rewards and promotes questionable characters, which makes him utterly unable to fix a scandal around unethical conduct.
Sorry Rupert, but after dictating for a record 58 years, it’s time to go — for the good of the 87.35% of News Corp that is not owned by your family. Resign as CEO and chairman and bring back Peter Chernin to fix up the mess.
Good to see that exchange Steven. I assume UK parliamentary committee has that. So he did not bother to keep up to date on issue and no one who worked for him wanted him to see any counter arguments to those he was running.
Sorry that should have been ‘Stephen’. Our press is dominated by an integrated multinational media company that turns out to have had amongst its ranks of senior editors and managers people who presided over a culture that saw no problem in hacking into phones and paying police officers. Of course there is a political problem.
Spot on Stephen.
The writing has been on the wall for some time… in fact its been a bathroom wall.
Why should anyone be surprised that Rupert thought he could get away with the hacking scandal and subsequent cover ups?
As detailed in Michael Wolff’s recent book ‘The Man Who Owns The News’ – (which was commissioned by Murdoch during his ‘legacy awareness’ phase in 2007) this is the same delusional/arrogant/senile? man who explained to his daughter Prudence that he dyed his hair bright orange in the privacy of his own bathroom rather than having it professionally coloured because he didn’t want people to know he was having his hair treated!
We are witnessing the sad but welcome decline of a brilliant, tyrannical and unethical businessman and it seems no one within the family or his circle has the anatomy to stand up to him.
His performance the other day with his arm around Rebekah Brooks declaring she was his top priority in this repulsive but cleansing scandal underscored both his senility and/or delusional state, plus it must be said on the evidence available, a possibly a pathetic infatuation (or maybe its just just red top bonding).
As for the obnoxious James Murdoch who boasted about putting this matter ‘in a box’ in virtually the same breath as lecturing the BBC, Guardian et. al. in his now famous Edinburgh speech on TRUST, of all subjects, one’s thoughts turn to what those wise characters of yesteryear – and by the way the inspiration for Simpsons – might say:
Bulwinkle: ‘Hey Rocky! Watch me pull a rabbit out of the box’
‘Mmm….. guess I need a new box!”
stephen even you dont get it mate
dont start blaming rebecca brooks or james murdoch or anybody else
rupert murdoch is to blame end of story
im surprised you are giving him a get out of jail card by looking for patsies for him
like i said yesterday, he should purchase a toothbrush and tootpaste and get ready for some time in jail
the sooner that happens the better
julia gillards comments yesterday whilst correct are like all the other comments coming from other politicians and commentators in this country and else where
they are 30 odd years to late
I know you’ve got it in for Rupert (admirably so), but maybe you need to calm down a little. News Corp will still be there running Sky and papers for some time to come.