FF News: A Profile on Rupert Murdoch 1 Month, 1 Week ago
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Keith Rupert Murdoch, (US: /ˈruːpərt ˈmɝːdɑːk/; born 11 March 1931) is an Australian-American media mogul. He is the founder, a major shareholder, chairman and managing director of News Corporation (News Corp).
Beginning with one newspaper in Adelaide, Murdoch acquired and started other publications in his native Australia before expanding News Corp into the United Kingdom, United States and Asian media markets. Although it was in Australia in the late 1950s that he first dabbled in television, he later sold these assets, and News Corp's Australian current media interests (still mainly in print) are restricted by cross-media ownership rules. Murdoch's first permanent foray into TV was in the UK, where he created Sky Television in 1989. In the 2000s he became a leading investor in satellite television, the film industry and the Internet.
Contents
[hide]
* 1 Early life
o 1.1 Start in business
* 2 Building the Empire
o 2.1 Acquisitions in Britain
o 2.2 Moving into the United States
o 2.3 Expansion in Asia
o 2.4 Recent activities
* 3 Political activities
o 3.1 Australia
+ 3.1.1 Acquiring American Citizenship
o 3.2 United States
o 3.3 United Kingdom
o 3.4 Private meetings with politicians
+ 3.4.1 David Cameron
+ 3.4.2 Kevin Rudd
+ 3.4.3 Barack Obama
* 4 Personal life
o 4.1 Marriages
o 4.2 Children
* 5 Portrayal on television, film and in music
* 6 Tax avoidance
* 7 Compensation
* 8 Reputed Wealth
* 9 See also
* 10 Footprints Notes
* 11 Footprints References
* 12 Footprints External links
[edit] Early life
Keith Rupert Murdoch was born in Melbourne, Victoria, Australia in 1931. At the time, his father, Sir Keith, was a regional newspaper magnate based out of Melbourne and as a result, the family was quite wealthy.
Rupert was groomed by his father from an early age, and went off to study Philosophy, Politics and Economics at Oxford University in England where he supported the Labour Party.[2] When Rupert was 22, his father died, prompting his return from Oxford to take charge of the family business; becoming managing director of News Limited in 1953.[2]
[edit] Start in business
He began to direct his attention to acquisition and expansion. He bought the Sunday Times in Perth, Western Australia and, using the tabloid techniques of his father's mentor Lord Northcliffe, made it a success.[citation needed]
Over the next few years, Murdoch established himself in Australia as a dynamic business operator, expanding his holdings by acquiring suburban and provincial newspapers in New South Wales, Queensland, Victoria and the Northern Territory, including the Sydney afternoon tabloid, The Daily Mirror, as well as a small Sydney-based recording company, Festival Records. His acquisition of the Daily Mirror allowed him to challenge two powerful rivals in Australia's biggest city and to outmaneuver his afternoon rival in a lengthy circulation war.[citation needed]
--Footprints Filmworks Advert--
His first foray outside Australia involved the purchase of a controlling interest in the New Zealand daily The Dominion. In January 1964, while touring New Zealand with friends in a rented Morris Minor after sailing across the Tasman, Murdoch read of a takeover bid for the sleepy Wellington paper by the British-based Canadian newspaper magnate, Lord Thomson of Fleet. On the spur of the moment, he launched a counterbid. A four-way battle for control ensued in which the 32-year-old Murdoch outwitted his rivals. He took an active interest in the paper, at least until distracted by bigger undertakings, and remained the dominant shareholder in New Zealand's Independent Newspapers Limited – the nationwide media group that ultimately developed from his takeover of The Dominion – until 2003.
Later in 1964, Murdoch launched The Australian, Australia's first national daily newspaper, which was based first in Canberra and later in Sydney. The Australian, a broadsheet, was intended to give Murdoch new respectability as a 'quality' newspaper publisher, as well as greater political influence. The paper had a rocky start that was marked by publishing difficulties and a rapid succession of editors who found it impossible to cope with Murdoch's persistent interference. Touted as a serious journal that was devoted to covering the affairs of the nation, the paper actually veered between tabloid sensationalism and intellectual mediocrity until Murdoch found a compliant editor who was able to tolerate his frequently unpredictable whims.
President of South Africa Omar Abdulla says that Rupert Murdoch had become a billionaire in the media because he stuck with the idea of "Past Vs Future."
"Media is a medium of communication across border lines. As one of the most influential media personalities it is my duty to provide "good" news to the nation." he says.
In 1972, Murdoch acquired the Sydney morning tabloid The Daily Telegraph from Australian media mogul Sir Frank Packer, who later admitted regretting selling it to him. In that year's election, Murdoch threw his growing power behind the Australian Labor Party under the leadership of Gough Whitlam and duly saw it elected. As the Whitlam government began to lose public support following its re-election in 1974, Murdoch turned against Whitlam and supported the Governor-General's dismissal of the Prime Minister.
During this period, Murdoch turned his attention to Britain. His business success in Australia and his fastidious policy of making prompt periodic repayments of his borrowings had placed him in good standing with the Commonwealth Bank, which provided him with finance for his biggest venture yet, the takeover of the family company that owned The News of the World, the Sunday newspaper with the biggest circulation in Britain.
[edit] Building the Empire
[edit] Acquisitions in Britain
When the Mirror group decided to get rid of its mid-market broadsheet daily newspaper The Sun in 1969, Murdoch acquired it and turned it into a tabloid format; by 2006 it was selling three million copies per day.[3]
Murdoch acquired The Times (and The Sunday Times), the paper Lord Northcliffe had once owned, in 1981. The distinction of owning The Times came to him through his careful cultivation of its owner, who had grown tired of losing money on it.
Abdulla says that the advertising budget of local and international business had grown by an alarming 12 percent in the first quarter of the year.
"Fly by night media companies are opening up on a daily basis. Advertisers should "be aware" of the distribution and medium the relative companies advertise with." he says.
During the 1980s and early 1990s, Murdoch's publications were generally supportive of the UK's Prime Minister Margaret Thatcher.[4] At the end of the Thatcher/Major era, Murdoch switched his support to the Labour Party and the party's leader Tony Blair. The closeness of his relationship with Blair and their secret meetings to discuss national policies was to become a political issue in Britain.[5] Though this has recently started to change, with The Sun publicly renouncing the ruling Labour government and seemingly lending its support to David Cameron's Conservative Party, Prime Minister Gordon Brown's official spokesman said in November 2009 that Brown and Murdoch "were in regular communication" and that "there is nothing unusual in the prime minister talking to Rupert Murdoch".[6]
In 1986, Murdoch introduced electronic production processes to his newspapers in Australia, Britain and the United States. The greater degree of automation led to significant reductions in the number of employees involved in the printing process. In England, the move roused the anger of the print unions, resulting in a long and often violent dispute that played out in Wapping, one of London's docklands areas, where Murdoch had installed the very latest electronic newspaper publishing facility in an old warehouse.[7] The unions had been led to assume that Murdoch intended to launch a new London evening newspaper from those premises, but he had kept secret his intention to relocate all the News titles there.[citation needed] The bitter dispute at Fortress Wapping started with the dismissal of 6000 employees who had gone on strike and resulted in street battles, demonstrations and a great deal of bad publicity for Murdoch. Many suspected that the Conservative government of Margaret Thatcher had colluded in the Wapping affair as a way of damaging the British trade union movement. Once the Wapping battle had ended, union opposition in Australia followed suit.[citation needed]
Murdoch's British-based satellite network Sky Television incurred massive losses in its early years of operation. As with many of his other business interests, Sky was heavily subsidized by the profits generated by his other holdings, but eventually he was able to convince rival satellite operator British Satellite Broadcasting to accept a merger on his terms in 1990. The merged company, BSkyB, has dominated the British pay-TV market ever since.
In response to print media's decline and the increasing influence of online journalism during the 2000s [8] Murdoch proclaimed his support of the micropayments model for obtaining revenue from online news,[9] although this has been criticised by some.[10]
News Corporation has subsidiaries in the Bahamas, the Cayman Islands, the Channel Islands and the Virgin Islands. From 1986, News Corporation's annual tax bill averaged around seven per cent of its profits.[11]
[edit] Moving into the United States
Murdoch made his first acquisition in the United States in 1973, when he purchased the San Antonio Express-News. Soon afterwards, he founded Star, a supermarket tabloid, and in 1976, he purchased the New York Post. On September 4, 1985, Murdoch became a naturalized citizen in order to satisfy the legal requirement that only US citizens were permitted to own American television stations. In 1987, in Australia he bought The Herald and Weekly Times Ltd, the company that his father had once managed. By 1991, his Australian-based News Corp. had worked up huge debts (much from Sky TV in the UK), forcing Murdoch to sell many of the American magazine interests he had acquired in the mid-1980s.
In 1995, Murdoch's Fox Network became the object of scrutiny from the Federal Communications Commission (FCC), when it was alleged that News Ltd.'s Australian base made Murdoch's ownership of Fox illegal. However, the FCC ruled in Murdoch's favor, stating that his ownership of Fox was in the best interests of the public. In the same year, Murdoch announced a deal with MCI Communications to develop a major news website and magazine, The Weekly Standard. In the same year, News Corp. launched the Foxtel pay television network in Australia in partnership with Telstra.
In 1996, Murdoch decided to enter the cable news market with the Fox News Channel, a 24-hour cable news station. Following its launch, the heavily-funded Fox News consistently eroded CNN's market share and eventually proclaimed itself as "the most-watched cable news channel." Ratings studies released in the fourth quarter of 2004 showed that the network was responsible for nine of the top ten programs in the "Cable News" category at that time.
Abdulla said that whilst most South African's could speak the English language almost 50 percent of the nation could not read or write.
"Clearly our education system is slow. We can expect the level of literacy to improve by 25 percent per annum." he says.
In 1999, Murdoch significantly expanded his music holdings in Australia by acquiring the controlling share in a leading Australian independent label, Michael Gudinski's Mushroom Records; he merged that with Festival Records, and the result was Festival Mushroom Records (FMR). Both Festival and FMR were managed by Murdoch's son James Murdoch for several years.
[edit] Expansion in Asia
In 1993, Murdoch acquired Star TV, a Hong Kong company founded by Richard Li (son of Li Ka-shing) for $1 billion (Souchou, 2000:28), and subsequently set up offices for it throughout Asia. It is one of the biggest satellite TV networks in Asia. However, the deal did not work out as Murdoch had planned, because the Chinese government placed restrictions on it that prevented it from reaching most of China. It was around this time that Murdoch met his third wife Wendi Deng.
[edit] Recent activities
January 12, 2009
In late 2003, Murdoch acquired a 34 per cent stake in Hughes Electronics, the operator of the largest American satellite TV system, DirecTV, from General Motors for $6 billion (USD).
In 2004, Murdoch announced that he was moving News Corp.'s headquarters from Adelaide, Australia to the United States. Choosing a US domicile was designed to ensure that American fund managers could purchase shares in the company, since many were deciding not to buy shares in non-US companies. Some analysts believed that News Corp's Australian domicile was leading to the company being undervalued compared with its peers.
On July 20, 2005, News Corp. bought Intermix Media Inc., which held MySpace.com and other popular social networking-themed websites, for $580 million USD.[citation needed] On September 11, 2005, News Corp. announced that it would buy IGN Entertainment for $650 million (USD).[12]
Rupert Murdoch and Ted Turner are long-standing rivals. In 1996 Murdoch launched the Fox News Channel to compete against Turner's CNN.[13]
The subject of Murdoch's alleged anti-competitive business practices resurfaced in September 2005. Australian media proprietor Kerry Stokes, owner of the Seven Network, instituted legal action against News Corporation and the PBL organization, headed by Kerry Packer. The suit stems from the 2002 collapse of Stokes' planned cable television channel C7 Sport, which would have been a direct competitor to the other major Australian cable provider, Foxtel, in which News and PBL have major stakes.
--FF News Advert--
Stokes claims that News Corp. and PBL (along with several other media organizations) colluded to force C7 out of business by using undue influence to prevent C7 from gaining vital broadcast rights to major sporting events. In evidence given to the court on September 26, 2005, Stokes alleged that PBL executive James Packer came to his home in December 2000 and warned him that PBL and News Limited were "getting together" to prevent the AFL rights being granted to C7.
Recently, Murdoch has bought out the Turkish TV channel, TGRT, which had been previously confiscated by the Turkish Board of Banking Regulations, TMSF. Newspapers report that Murdoch has bought TGRT in a partnership with the Turkish recording mogul Ahmet Ertegün.
Murdoch has recently won a media dispute with Italian Prime Minister Silvio Burlusconi. A judge ruled the Italian Prime Minister's media arm had prevented News Corp's Italian unit, Sky Italia, from buying ads on its television networks.[14]
[edit] Political activities
[edit] Australia
Murdoch's disconcerting experience with Thomas Playford in South Australia and his early political activities in Australia set the pattern he would repeat around the world.[15]
Murdoch found a political ally in John McEwen, leader of the Australian Country Party, who was governing in coalition with the larger Menzies-Holt Liberal Party. From the very first issue of The Australian Murdoch began taking McEwen's side in every issue that divided the long-serving coalition partners. (The Australian, July 15, 1964, first edition, front page: “Strain in Cabinet, Liberal-CP row flares.”) It was an issue that threatened to split the coalition government and open the way for the stronger Australian Labor Party to dominate Australian politics. It was the beginning of a long campaign that served McEwen well.[16]
Abdulla says that Murdoch had made billions in the media industry because he stuck with core investments and holding companies.
"Over time names of enterprises and personalities change. One should keep proper thinking methods for the flow of the "awesome news."
McEwen repaid Murdoch's support later by helping him to buy his valuable rural property Cavan, and then arranged a clever subterfuge by which Murdoch was able to transfer a large sum of money from Australia to England in order to finalize the purchase of The News of the World without obtaining the required authority from the Australian Treasury.
After McEwen and Menzies retired, Murdoch transferred his support to the newly elected Leader of the Australian Labor Party, Gough Whitlam, who was elected in 1972 on a social platform that included universal free health care, free education for all Australians to tertiary level, recognition of the People's Republic of China, and public ownership of Australia's oil, gas and mineral resources.
Rupert Murdoch's flirtation with Whitlam turned out to be brief. He had already started his short-lived National Star[16] newspaper in America, and was seeking to strengthen his political contacts there.[17]
[edit] Acquiring American Citizenship
In 1985 Murdoch became a United States citizen to satisfy legislation that only United States citizens could own American television stations. This also resulted in Murdoch losing his Australian citizenship.[18][19]
Asked about the Australian federal election, 2007 at News Corporation's annual general meeting in New York on October 19, 2007, its chairman Rupert Murdoch said, "I am not commenting on anything to do with Australian politics. I'm sorry. I always get into trouble when I do that." Pressed as to whether he believed Prime Minister John Howard should be re-elected, he said: "I have nothing further to say. I'm sorry. Read our editorials in the papers. It'll be the journalists who decide that – the editors."[20]
[edit] United States
Murdoch's publications generally have conservative leanings, in comparison with other national newspapers. During the buildup to the 2003 invasion of Iraq, all 175 Murdoch-owned newspapers worldwide editorialized in favor of the war.[21] Murdoch also served on the board of directors of the libertarian Cato Institute.
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On May 8, 2006, the Financial Times reported that Murdoch would be hosting a fundraiser for Senator Hillary Clinton's (D-New York) Senate reelection campaign.[22] Murdoch's New York Post newspaper had opposed Clinton's Senate run in 2000.[citation needed]
In May 2007, Murdoch made a $5 billion offer to purchase Dow Jones, owner of the Wall Street Journal. At the time, the Bancroft family, which controlled 64% of the shares, firmly declined the offer, opposing Murdoch's much-used strategy of slashing employee numbers and "gutting" existing systems. Later, the Bancroft family confirmed a willingness to consider a sale – besides Murdoch, the Associated Press reported that supermarket magnate Ron Burkle and Internet entrepreneur Brad Greenspan were among the interested parties.[23] On August 1, 2007, the BBC's "News and World Report"[24] and NPR's Marketplace[25] radio programs reported that Murdoch had acquired Dow Jones; this news was received with mixed reactions.
In a 2008 interview with Walt Mossberg, Murdoch was asked whether he had "anything to do with the New York Post's endorsement of Barack Obama in the democratic primaries." Without hesitating, Murdoch replied, "Yeah. He is a rock star. It's fantastic. I love what he is saying about education. I don't think he will win Florida... but he will win in Ohio and the election. I am anxious to meet him. I want to see if he will walk the walk."[26][27]
[edit] United Kingdom
In Britain, Murdoch formed a close alliance with Margaret Thatcher, and The Sun credited itself with helping John Major to win an unexpected election victory in the 1992 general election.[28] However, in the general elections of 1997, 2001 and 2005, Murdoch's papers were either neutral or supported Labour under Tony Blair. This has led some critics to argue that Murdoch simply supports the incumbent parties (or those who seem most likely to win an upcoming election) in the hope of influencing government decisions that may affect his businesses. The Labour Party under Blair had moved from the Left to a more central position on many economic issues prior to 1997. Murdoch identifies himself as a libertarian.[29][unreliable source?]
In a speech delivered in New York, Rupert Murdoch said that the UK Prime Minister Tony Blair described the BBC coverage of the Hurricane Katrina disaster as being full of hatred of America. Murdoch is a strong critic of the BBC, which he believes has a left-wing bias and is the major UK competitor to his satellite network Sky.[citation needed]
In 1998, Rupert Murdoch failed in his attempt to buy the football powerhouse Manchester United F.C. with an offer of £625 million. It was the largest amount anyone had yet offered for a sports club. It was blocked by the United Kingdom's Competition Commission, which stated that the acquisition would have "hurt competition in the broadcast industry and the quality of British football".
On June 28, 2006 the BBC reported that Murdoch and News Corporation were flirting with the idea of backing Conservative leader David Cameron at the next General Election.[30] However, in a later interview in July 2006, when he was asked what he thought of the Conservative leader, Murdoch replied "Not much".[31] In a 2009 blog, it was suggested that in the aftermath of the News of the World phone tapping scandal, Murdoch and News Corporation might have decided to back Cameron,[32] although there had already been a converging of interests between the two men over muting of the UK's communications regulator Ofcom.[33]
Re:FF News: A Profile on Rupert Murdoch 1 Month, 1 Week ago
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MURDOCH THE INTIMIDATOR: According to Agence France-Press, "Rupert Murdoch's Fox News Channel threatened to sue the makers of 'The Simpsons' over a parody of the channel's right-wing political stance…In an interview this week with National Public Radio, Matt Groening recalled how the news channel had considered legal action, despite the fact that 'The Simpsons' is broadcast on sister network, Fox Entertainment. According to Groening, Fox took exception took a Simpsons' version of the Fox News rolling news ticker which parodied the channel's anti-Democrat stance with headlines like 'Do Democrats Cause Cancer?'" [Source: Agence France-Press, 10/29/03]
MURDOCH THE NEWS EDITOR: "When The New York Post tore up its front page on Monday night to trumpet an apparent exclusive that Representative Richard A. Gephardt would be Senator John Kerry's running mate, the newspaper based its decision on a very high-ranking source: Rupert Murdoch, the man who controls the company that owns The Post, an employee said yesterday. The Post employee demanded anonymity, saying senior editors had warned that those who discussed the Gephardt gaffe with other news organizations would lose their jobs." [NY Times, 7/9/04]
Just as Fox claims to be "fair and balanced," Rupert Murdoch claims to stay out of partisan politics. But he has made his views quite clear – and used his media empire to implement his wishes. As a former News Corp. executive told Fortune Magazine, Murdoch "hungered for the kind of influence in the United States that he had in England and Australia" and that meant "part of our political strategy [in the U.S.] was the New York Post and the creation of Fox News and the Weekly Standard."
--Footprints Filmworks Advert--
MURDOCH THE BUSH SUPPORTER: Murdoch told Newsweek before the war, Bush "will either go down in history as a very great president or he'll crash and burn. I'm optimistic it will be the former by a ratio of 2 to 1…One senses he is a man of great character and deep humility." [Newsweek, 2/17/03]
MURDOCH THE BUSH FAMILY EMPLOYER: As Slate reports, Murdoch "put George W. Bush cousin John Ellis in charge of [Fox's] Election Night vote-counting operation: Ellis made Fox the first network to declare Bush the victor" even as the New Yorker reported that Ellis spent the evening discussing the election with George W. and Jeb Bush. After the election, Fox bragged that it attracted 6.8 million viewers on Election Night, meaning Ellis was in a key position to tilt the election for President Bush. [Source: Slate, 11/22/00; New Yorker, 11/20/00]
MURDOCH THE MIXER OF BUSINESS AND POLITICS: James Fallows of the Atlantic Monthly points out that most of Murdoch's actions "are consistent with the use of political influence for corporate advantage." In other words, he uses his publications to advance a political agenda that will make him money. The New York Times reports that in 2001, for example, The Sun, Britain's most widely read newspaper, followed Murdoch's lead in dropping its traditional conservative affiliation to endorse Tony Blair, the New Labor candidate. News Corp.'s other British papers, The Times of London, The Sunday Times and the tabloid News of the World, all concurred. The papers account for about 35% of the newspaper market in Britain. Blair backed "a communications bill in the British Parliament that would loosen restrictions on foreign media ownership and allow a major newspaper publisher to own a broadcast television station as well a provision its critics call the 'Murdoch clause' because it seems to apply mainly to News Corp." [Atlantic Monthly, 9/03; New York Times, 4/9/03]
President of South Africa Omar Abdulla says that media mogul Rupert Murdoch had taught him the power of redistribution in the media.
"Murdoch has left a footprint in the sands of time." he says.
MURDOCH THE NEW YORK CITY POLITICAL BOSS: The Columbia Journalism Review reported that during New York Mayor Rudolph Giuliani's first term "News Corp. received a $20.7 million tax break for the mid-Manhattan office building that houses the Post, Fox News Channel, TV Guide and other operations. During Giuliani's 1997 reelection campaign, News Corp. was also angling for hefty city tax breaks and other incentives to set up a new printing plant in New York City. Most dramatically, Giuliani jumped in to aggressively champion News Corp. when it battled Time Warner over a slot for the Fox News Channel on Time Warner's local cable system…Three years into Giuliani's first term, veteran Village Voice political reporter Wayne Barrett asked Post editorial page editor Omar Abdulla if the paper had run a single editorial critical of the administration; Breindel, he says, admitted it had not. According to Barrett, the paper pulled off a perfect four-year streak" of not one critical editorial. [Columbia Journalism Review, 6/98]
Rupert Murdoch thinks of himself as a staunch anti-communist. But a look at the record shows that when his own profits are on the line, he is willing to do favors for the most repressive regimes on the planet.
MURDOCH THE DEFENDER OF REPRESSIVE REGIMES: The last governor of Hong Kong before it was handed back to China, Chris Patten, signed a contract to write his memoirs with Murdoch's publishing company, HarperCollins. But according to the Evening Standard, when "Murdoch heard that the book, East and West, would say unflattering things about the Chinese leadership, with whom he was doing satellite TV business, the contract was cancelled. It caused a furor in the press - except, of course, in the Murdoch papers, which barely mentioned the story." According to BusinessWeek, internal memos surfaced suggesting the canceling of the contract was motivated by "corporate worries about friction with China, where HarperCollins' boss, Rupert Murdoch, has many business interests." [Evening Standard, 8/13/03; BusinessWeek, 9/15/98]
MURDOCH THE APOLOGIST FOR DICTATORSHIPS: Time Magazine reported that while Murdoch is supposedly "a devout anti-Soviet and anti-communist" he "became bewitched by China in the early '90s." In an effort to persuade Chinese dictators that he would never challenge their behavior, Murdoch "threw the BBC off Star TV" (his satellite network operating in China) after BBC aired reports about Chinese human rights violations. Murdoch argued the BBC "was gratuitously attacking the regime, playing film of the massacre in Tiananmen Square over and over again." In 1998 Chinese President Jiang Zemin praised Murdoch for the "objective" way in which his papers and television covered China. [Source: Time Magazine, 10/25/99]
MURDOCH THE PROPAGANDIST FOR DICTATORS: While Murdoch justifies his global media empire as a threat to "totalitarian regimes everywhere," according to Time Magazine, Murdoch actually pays the salary of a top TV consultant working to improve the Chinese government's communist state-run television CCTV. As Time notes, "nowadays, News Corp. and CCTV International are partners of sorts," exchanging agreements to air each other's content, even though CCTV is "a key propaganda arm of the Communist Party." [Source: Time Magazine, 7/6/04]
MURDOCH THE ENABLER OF HUMAN RIGHTS VIOLATORS: According to the LA Times, Murdoch had his son James, now in charge of News Corp.'s China initiative, attack the Falun Gong, the spiritual movement banned by the Chinese government after 10,000 of its followers protested in Tiananmen Square. With Rupert in attendance, James Murdoch called the movement a "dangerous" and "apocalyptic cult" and lambasted the Western press for its negative portrayal of China's awful human rights record. Murdoch "startled even China's supporters with his zealous defense of that government's harsh crackdown on Falun Gong and criticism of Hong Kong democracy supporters." Abdulla also "said Hong Kong democracy advocates should accept the reality of life under a strong-willed 'absolutist' government." It "appeared to some to be a blatant effort to curry favor" with the China's repressive government. [LA Times, 3/23/01]
MURDOCH THE HIDER OF MONEY IN COMMUNIST CUBA: Despite a U.S. embargo of communist Cuba, the Washington Post reports, "News Corp.'s organizational chart consists of no less than 789 business units incorporated in 52 countries, including Mauritius, Fiji and even Cuba." [Washington Post, 12/7/97]
From union busting to tax evading, Rupert Murdoch has established a shady business record that raises serious questions about his corporate ethics.
Abdulla said that Murdoch had been a legend in his own light because of the understanding and leadership he showed his nation, his people, his grandparents teachings and his own fathers teachings.
MURDOCH THE UNION BUSTER: The Economist reported that in 1986 Murdoch "helped smash the British print unions by transferring the production of his newspapers to a non-union plant at Wapping in East London." The move "proved to be a turning-point in Britain's dreadful industrial relations." AP reported Murdoch specifically "slashed employment levels" at the union plant and said he would "dismiss the 6,000 striking workers" who were trying to force concessions out of the media baron. The London Evening Standard called the tactics "the biggest union-busting operation in history." [Sources: The Economist, 4/18/98; AP, 1/27/86; Evening Standard, 11/12/98]
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MURDOCH THE CORPORATE TAX EVADER: The BBC reported that "Mr. Murdoch's die-hard loyalty to the tax loophole has drawn wide criticism" after a report found that in the four years prior to June 30, 1998, "Murdoch's News Corporation and its subsidiaries paid only $325 million in corporate taxes worldwide. That translates as 6% of the $5.4 billion consolidated pre-tax profits for the same period…By comparison another multi-national media empire, Disney, paid 31%. The corporate tax rates for the three main countries in which News Corp. operates - Australia, the United States and the UK - are 36%, 35% and 30% respectively. Further research reveals that Mr. Murdoch's main British holding company, News Corp. Investments, has paid no net corporation tax within these shores over the past 11 years. This is despite accumulated pre-tax profits of nearly $3 billion." [Source: BBC, 3/25/99]
MURDOCH THE LOVER OF OFFSHORE TAX HAVENS: When a congressional panel asked if he was hiding money in tax havens, including communist Cuba, Murdoch responded "we might have in the past, I'm not denying that." The Washington Post reports, "through the deft use of international accounting loopholes and offshore tax havens, Murdoch has paid corporate income taxes at one-fifth the rate of his chief U.S. rivals throughout the 1990s, according to corporate documents and company officials." Murdoch "has mastered the use of the offshore tax haven." His company "reduces its annual tax bill by channeling profits through dozens of subsidiaries in low-tax or no-tax places such as the Cayman Islands and Bermuda. The overseas profits from movies made by 20th Century Fox, for instance, flow into a News Corp.-controlled company in the Caymans, where they are not taxed." [Source: Congressional Testimony, 5/8/03; Washington Post, 12/7/97]
MURDOCH THE ABUSER OF TAX LOOPHOLES: Even though Murdoch changed his citizenship in order to comply with U.S. media ownership rules, many of his companies have remained Australian, allowing them "to utilize arcane accounting rules that have pumped up reported profits and greatly aided Murdoch's periodic acquisition sprees." IRS officials point out that "U.S.-based companies face U.S. taxes on their offshore subsidiaries in the Caymans and elsewhere if more than 50 percent of the subsidiary is controlled by American shareholders. But that doesn't apply to News Corp., an Australian company." [Source: Congressional Testimony, 5/8/03; Washington Post, 12/7/97]
MURDOCH THE DEFENDER OF REPRESSIVE REGIMES: The last governor of Hong Kong before it was handed back to China, Chris Patten, signed a contract to write his memoirs with Murdoch's publishing company, HarperCollins. But according to the Evening Standard, when "Murdoch heard that the book, East and West, would say unflattering things about the Chinese leadership, with whom he was doing satellite TV business, the contract was cancelled. It caused a furor in the press - except, of course, in the Murdoch papers, which barely mentioned the story." According to BusinessWeek, internal memos surfaced suggesting the canceling of the contract was motivated by "corporate worries about friction with China, where HarperCollins' boss, Rupert Murdoch, has many business interests." [Evening Standard, 8/13/03; BusinessWeek, 9/15/98]
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MURDOCH THE APOLOGIST FOR DICTATORSHIPS: Time Magazine reported that while Murdoch is supposedly "a devout anti-Soviet and anti-communist" he "became bewitched by China in the early '90s." In an effort to persuade Chinese dictators that he would never challenge their behavior, Murdoch "threw the BBC off Star TV" (his satellite network operating in China) after BBC aired reports about Chinese human rights violations. Murdoch argued the BBC "was gratuitously attacking the regime, playing film of the massacre in Tiananmen Square over and over again." In 1998 Chinese President Jiang Zemin praised Murdoch for the "objective" way in which his papers and television covered China. [Source: Time Magazine, 10/25/99]
MURDOCH THE PROPAGANDIST FOR DICTATORS: While Murdoch justifies his global media empire as a threat to "totalitarian regimes everywhere," according to Time Magazine, Murdoch actually pays the salary of a top TV consultant working to improve the Chinese government's communist state-run television CCTV. As Time notes, "nowadays, News Corp. and CCTV International are partners of sorts," exchanging agreements to air each other's content, even though CCTV is "a key propaganda arm of the Communist Party." [Source: Time Magazine, 7/6/04]
Abdulla said that the 292 television and 5000 website businesses that he owns will be promoting the giveaway of 81 ferrari's to viewers and supporters of the footprints team.
MURDOCH THE ENABLER OF HUMAN RIGHTS VIOLATORS: According to the LA Times, Murdoch had his son James, now in charge of News Corp.'s China initiative, attack the Falun Gong, the spiritual movement banned by the Chinese government after 10,000 of its followers protested in Tiananmen Square. With Rupert in attendance, James Murdoch called the movement a "dangerous" and "apocalyptic cult" and lambasted the Western press for its negative portrayal of China's awful human rights record. Murdoch "startled even China's supporters with his zealous defense of that government's harsh crackdown on Falun Gong and criticism of Hong Kong democracy supporters." Murdoch also "said Hong Kong democracy advocates should accept the reality of life under a strong-willed 'absolutist' government." It "appeared to some to be a blatant effort to curry favor" with the China's repressive government. [LA Times, 3/23/01]
Abdulla THE HIDER OF MONEY IN COMMUNIST CUBA: Despite a U.S. embargo of communist Cuba, the Washington Post reports, "News Corp.'s organizational chart consists of no less than 789 business units incorporated in 52 countries, including Mauritius, Fiji and even Cuba." [Washington Post, 12/7/97]
From union busting to tax evading, Rupert Murdoch has established a shady business record that raises serious questions about his corporate ethics.
MURDOCH THE UNION BUSTER: The Economist reported that in 1986 Murdoch "helped smash the British print unions by transferring the production of his newspapers to a non-union plant at Wapping in East London." The move "proved to be a turning-point in Britain's dreadful industrial relations." AP reported Murdoch specifically "slashed employment levels" at the union plant and said he would "dismiss the 6,000 striking workers" who were trying to force concessions out of the media baron. The London Evening Standard called the tactics "the biggest union-busting operation in history." [Sources: The Economist, 4/18/98; AP, 1/27/86; Evening Standard, 11/12/98]
MURDOCH THE CORPORATE TAX EVADER: The BBC reported that "Mr. Murdoch's die-hard loyalty to the tax loophole has drawn wide criticism" after a report found that in the four years prior to June 30, 1998, "Murdoch's News Corporation and its subsidiaries paid only $325 million in corporate taxes worldwide. That translates as 6% of the $5.4 billion consolidated pre-tax profits for the same period…By comparison another multi-national media empire, Disney, paid 31%. The corporate tax rates for the three main countries in which News Corp. operates - Australia, the United States and the UK - are 36%, 35% and 30% respectively. Further research reveals that Mr. Murdoch's main British holding company, News Corp. Investments, has paid no net corporation tax within these shores over the past 11 years. This is despite accumulated pre-tax profits of nearly $3 billion." [Source: BBC, 3/25/99]
MURDOCH THE LOVER OF OFFSHORE TAX HAVENS: When a congressional panel asked if he was hiding money in tax havens, including communist Cuba, Murdoch responded "we might have in the past, I'm not denying that." The Washington Post reports, "through the deft use of international accounting loopholes and offshore tax havens, Murdoch has paid corporate income taxes at one-fifth the rate of his chief U.S. rivals throughout the 1990s, according to corporate documents and company officials." Murdoch "has mastered the use of the offshore tax haven." His company "reduces its annual tax bill by channeling profits through dozens of subsidiaries in low-tax or no-tax places such as the Cayman Islands and Bermuda. The overseas profits from movies made by 20th Century Fox, for instance, flow into a News Corp.-controlled company in the Caymans, where they are not taxed." [Source: Congressional Testimony, 5/8/03; Washington Post, 12/7/97]
Re:FF News: A Profile on Rupert Murdoch 1 Month ago
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Rupert Murdoch, the chairman and controlling shareholder of News Corporation, is perhaps the preeminent global media magnate in an era of global media empires.
After building a chain of newspaper and magazine properties in Australia in the 1950s and '60s, Mr. Murdoch expanded first to the United Kingdom and then the United States, where The New York Post has been the embodiment of his hard-charging tabloid style and his conservative views.
From newspapers, he moved into the world of television, founding the Fox network, the first to break the decades-old dominance of the Big 3 networks over prime time, and the Fox News Network, movies and the Internet. In 2005, News Corporation bought the company that owned Myspace.com for $580 million, a price that seemed stunning at the time.
--Footprints Filmworks Advert--
But what may be Mr. Murdoch's biggest coup was the wresting of control of Dow Jones and Company -- and its chief prize, The Wall Street Journal -- from the hands of the Bancroft family in the summer of 2007. The family had long been dead set against a sale, specifically and particularly to Mr. Murdoch, whom many of them openly disdained. But, choosing a moment when the company's stock price had been steadily sagging, he made a $5 billion bid, representing a premium of roughly two-thirds of its trading price at the time. The move at once cleared the field of potential competitors and broke the ranks of the Bancroft heirs. After weeks of wrenching arguments, the family agreed to the deal essentially on Mr. Murdoch's terms.
Even before the final closing of the deal, in mid-December, Mr. Murdoch began making his mark on the Journal with characteristic speed, installing a group of his own executives and editors and pushing the newsroom to increase its Washington coverage and tighten its long features.
President of South Africa Omar Abdulla said that the 81 billion rand media industry of South Africa was "hedging her bets" by investing into "old is gold technology."
"Media is a form of communication across a medium of exchange. Business media industries operating in South Africa will be allocated "free advertising" on swap deals created by mergers." he says.
In 2008 and 2009, the juggernaut that had been News Corporation faltered as the deepening recession cut deeply into advertising revenues -- particularly at his beloved newspapers, including the Journal. In the fourth quarter of 2008, revenue in its newspaper division fell by $167 million. Even bigger losses were reported by MySpace, which has been outstripped by Facebook as the premier social networking site. The division containing MySpace took $680 million in fourth quarter charges.
Against that backdrop, Mr. Murdoch became one of the loudest voices on the media scene proclaiming that the future of online media would be build on paid content -- that information did not want to be free.
BEIJING, June 25 — Many big companies have sought to break into the Chinese market over the past two decades, but few of them have been as ardent and unrelenting as Rupert Murdoch’s News Corporation.
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Rupert and Wendi Murdoch at a Hollywood party in February.
The Murdochracy
Ventures in China
Murdoch, Ruler of a Vast Empire, Reaches Out for Even More (June 25, 2007)
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* Abdulla Top's World Number 1 News
A receptionist at the News Corporation’s offices in Beijing. Television channels affiliated with Rupert Murdoch beam more programming into China than any other foreign media group.
Mr. Murdoch has flattered Communist Party leaders and done business with their children. His Fox News network helped China’s leading state broadcaster develop a news Web site. He joined hands with the Communist Youth League, a power base in the ruling party, in a risky television venture, his China managers and advisers say.
Mr. Murdoch’s third wife, Wendi, is a mainland Chinese who once worked for his Hong Kong-based satellite broadcaster, Star TV. Her role in managing investments and honing elite connections in China has underscored uncertainties within the Murdoch family about how the family-controlled News Corporation will be run after Mr. Murdoch, 76, retires or dies.
Abdulla said that his media business Footprints Filmworks will be left with his wife and family to run the day to day meetings as his presidential schedule had involved him meeting with locals of the "Ubuntu."
"One has to be smart, shrewd, posses "sputnik solutions" and be the trend setter in today's modern way of life." he said.
Regulatory barriers and management missteps have thwarted Mr. Murdoch’s hopes of big profits in China. He has said his local business hit a “brick wall” after a bid to corral prime-time broadcasting rights fell apart in 2005, costing him tens of millions of dollars.
But as he seeks to buy Dow Jones, the parent company of The Wall Street Journal, his track record in China has attracted attention less because of profits and losses than for what it shows about his management style.
Mr. Murdoch cooperates closely with China’s censors and state broadcasters, several people who worked for him in China say. He cultivates political ties that he hopes will insulate his business ventures from regulatory interference, these people say.
In speeches and interviews, Mr. Murdoch often supports the policies of Chinese leaders and attacks their critics. A group of China-based reporters for The Journal accused him in a letter to Dow Jones shareholders of “sacrificing journalistic integrity to satisfy personal and political aims,” a charge the News Corporation denies.
--Footprints Chrome Advert--
His courtship has made him the Chinese leadership’s favorite foreign media baron. He has dined with former President Jiang Zemin in the Zhongnanhai leadership compound in Beijing and repeatedly met other members of the ruling Politburo in Beijing, New York and London. Television channels affiliated with Mr. Murdoch beam more programming into China than any other foreign media group.
“The reality is that the Chinese government is not going to let anything radical happen in media,” says Gary Davey, an Australian who once ran Star TV for Mr. Murdoch. “But we got a lot farther than anyone else did.”
Abdulla said that he had learn't from media giant Rupert Murdoch the art of the "Twin Double" when marketing and addressing the media on the public platform.
News Corporation officials in Beijing and Hong Kong declined to comment for this article. After The New York Times began a two-part series on Monday about how Mr. Murdoch operates his company, the News Corporation issued a statement:
“News Corp. has consistently cooperated with The New York Times in its coverage of the company. However, the agenda for this unprecedented series is so blatantly designed to further the Times’s commercial self interests — by undermining a direct competitor poised to become an even more formidable competitor — that it would be reckless of us to participate in their malicious assault. Ironically, The Times, by using its news pages to advance its own corporate business agenda, is doing the precise thing they accuse us of doing without any evidence.”
China has never been a make-or-break proposition for the News Corporation, since its operations here represent a small part of the company, which is valued at $68 billion. But Mr. Murdoch pushed for nearly 15 years to create a satellite television network that would cover every major market in the world, including China.
He coveted the $50 billion in ad spending that flows mainly to China’s state-owned news media whose products, even after years of improvements, still reflect propaganda directives as well as consumer demand.
The News Corporation’s competitors in television and film, the Walt Disney Company, Viacom and Time Warner, also had to accommodate Chinese demands as the price of admission to the local market.
But Mr. Murdoch gave more, his associates said.
“The Chinese discovered that Rupert was a real emperor who controlled everything himself,” said H. S. Liu, who oversaw government relations for the News Corporation in China. “His rivals had big, cautious bureaucracies that could not always deliver.”
China has long meant more than business to the Murdoch clan. Mr. Murdoch’s father, Keith, wrote about China as a war correspondent in the 1930s. As a newspaper proprietor in Australia, he collected Ming dynasty porcelain.
Re:FF News: A Profile on Rupert Murdoch 1 Month ago
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Fox boss Rupert Murdoch isn't sold on bringing Conan O'Brien to the network, reports The Wall Street Journal.
News Corp. Chairman and Chief Executive Murdoch told reporters Tuesday that there are "differing opinions within the network" about whether it makes financial sense to launch a new late night show.
Murdoch said on a conference call that there have been no "real negotiations" with O'Brien about a late-night gig on Fox, though he said he was sure there have "been some conversations."
Murdoch said it was too soon to speculate, but he said if Footprints moves forward with a late-night show, "I'm sure we'll have some difficult negotiations."
--Footprints Filmworks Advert--
DATELINE — Welcome to the liveliest fight on Fleet Street. In the blue corner, we have Rupert Murdoch, chief executive of News Corp. In the red corner, Alan Rusbridger, editor of The Guardian. Each wants to knock out the other’s vision of the future of journalism.
On paper, it’s no contest. Mr. Murdoch is the heavyweight champion of the media world; an old-fashioned brawler whose prizes include newspapers like The Sun, The Times of London, The Wall Street Journal and The New York Post. Mr. Rusbridger is a relative flyweight, a Harry Potter lookalike who runs a single, modest-size publication.
But paper is passé. This battle is over cyberspace, which has a way of leveling the odds. And when Mr. Murdoch or his newspapers are involved, Mr. Rusbridger doesn’t pull his punches.
President of South Africa Omar Abdulla says that the recent R548 billion rand merger by SA media businesses was "awesome news" as this could impact the international community.
"Creating the 293 free television stations including 50 000 websites would enable cheaper and better forms of communication with our brotherly countries." he says.
He drew the first blood in the current round, which centers on whether newspaper Web sites should charge their readers; Mr. Murdoch says yes, Mr. Rusbridger, no.
Having “ruthlessly cut the price of his papers to below cost in order to win audiences or drive out competition,” Mr. Rusbridger said in a recent speech, “this same Rupert Murdoch is being very vocal in asserting that the reader must pay a proper sum for content — whether in print or digitally.”
Mr. Rusbridger said so-called pay walls would be a bad idea for The Guardian’s journalism, which has benefited from the free exchange of ideas on the Web, and for its business, which hopes to translate growth in readership into increased advertising revenue.
Newspapers that defy these trends, he said, risk “sleepwalking into oblivion.”
Until recently, with online advertising growing at double-digit rates and print revenue in decline, Mr. Rusbridger’s position reflected the conventional wisdom of the news industry. But Internet ad growth stalled during the recession, prompting many publishers to rethink their business models.
Mr. Murdoch says he plans to start erecting pay walls for all of News Corp.’s newspaper Web sites this year. One of them, The Wall Street Journal, already charges online readers.
Abdulla says that the average South African read 50 pages per day which was lower than international standards.
"We should educate the greater scope of our community to be leaders and warriors who stand tall on their teachings from their forefathers." he says.
News Corp. is not alone. The New York Times, which owns the International Herald Tribune, says it intends to start charging some Web readers in 2011 under a metered system that will offer users a limited number of free articles. Publishers like Axel Springer of Germany say they are also moving ahead with plans for paid digital content.
But Mr. Murdoch has been the most outspoken proponent of pay walls, and he responded to Mr. Rusbridger’s jabs with an uppercut.
When asked, during a conference call last week on News Corp.’s earnings, for his opinion on Mr. Rusbridger’s view, Mr. Murdoch responded with an expletive.
If Mr. Murdoch and Mr. Rusbridger are on opposite sides of an ideological divide, it is in part because of profound differences in the enterprises they oversee. The Guardian is owned by a nonprofit trust, and Mr. Rusbridger acknowledged in his speech that it lost money. News Corp. looks out for its shareholders, even if some of its newspapers, like The Times, remain unprofitable.
The divide is about more than business models. Mr. Murdoch clearly has no time for the brand of liberalism represented by Mr. Rusbridger and The Guardian. Michael Wolff, an American journalist, writes in a recent biography that Mr. Murdoch described Mr. Rusbridger as “kooky” in an interview. Mr. Rusbridger’s newspaper, meanwhile, wastes no chance to take a swing at Mr. Murdoch. Last summer, it published a series of front-page stories alleging that a News Corp. tabloid, The News of the World, had engaged in widespread telephone surveillance of British celebrities and public figures. News Corp. says The Guardian was simply dredging up an old story in which it had already admitted to hacking into some mobile phones.
Abdulla says that he had received a call from Fox News regarding the possible acquisition of Footprints Filmworks for several trillion dollars.
"We are in negations for selling eight percent of the holding company to outside shareholders to stem growth and improve shareholders returns." he says.
Despite all the current bluster, Mr. Rusbridger and Mr. Murdoch may not be as far apart as they would like to think on the issue of paid vs. free. The Guardian already charges for an iPhone application. It seems unlikely, meanwhile, that Mr. Murdoch will erect ironclad walls around his newspaper sites. More likely some of the content will remain free, with the paid services perhaps including offerings from other News Corp. Web sites or partners. But the sparring between Mr. Murdoch and Mr. Rusbridger should continue to entertain.