Rupert Murdoch is now in the UK, trying to find a way out of the scandals engulfing the UK part of his media empire. He is under increasing pressure to dump Rebekah Brooks, who was in charge during much of the wrongdoing.
And his competitors are now having a field day as more of the activities of Murdoch’s newspapers come to light.
Gordon Brown was targeted with attempts made to access his voicemail and information from his bank account, his legal file as well as his family’s medical records, we were told today. It is also thought that Brown’s tax paperwork was taken from his accountant’s office, apparently by hacking into the firm’s computer.
A senior executive at the News of the World is also alleged to have approved the paying of money to Scotland Yard protection officers for phone numbers and personal details about the royal family and their friends. According to the Guardian, it is believed a total of £130,000 was given to between three and five police officers for information.
And this is on top of the phone tapping of many other politicians, murder victims and families of servicemen.
Murdoch’s plans to takeover all of BskyB appeared to be progressing nicely a few weeks ago. But now the odds must be against him as both public and political pressure grows by the day.
Deputy Prime Minister Nick Clegg has now joined Labour’s calls for Murdoch to abandon his takeover altogether, and senior advisers must be telling Murdoch to give the matter serious consideration. And a Commons motion seeking a halt to the takeover will be debated on Wednesday.
Meanwhile Murdoch has seen shares in his News Corporation fall, suffering a 7% drop in its share price on Monday in New York. The company has an extensive global reach, with a presence in most countries and an annual revenue of more than £19bn. His media empire includes television stations and newspapers all across the globe, as well as Hollywood studio 20th Century Fox
In a tactical move, the News Corporation announced yesterday that it had withdrawn its proposal to spin off Sky News as part of the BSkyB acquisition. This brought the proposed takeover within the remit of the Competition Commission and forced the government to make the referral.
This will delay consideration of the takeover considerably, but is an indication that Murdoch intends to go ahead with the move despite everything that has been revealed. Does he think that he will fare better in legal circles than he would in either political ones or the court of public opinion? Or that time for the dust to settle will be in his favour?
Rupert Murdoch has long been Britain’s most powerful media magnate, with a daunting political influence over decades that has led both major political parties to seek his favour.
Are we finally seeing the beginning of the end for the 80 year old Australian tycoon?
It is perhaps too early to begin to write his epitaph. But questions about his management and of those close to him will take a great deal of answering.
This is the once in a generation opportunity to end the power and influence of the Murdoch empire. Labour has most to gain from an honest media. Milliband has played a blinder so far. But this is going to be a long game so let’s hope Ed’s got the stamina to see it through.