TIME: ‘Tabloid Meltdown’ Threatens Rupert Murdoch And His Media Empire

by Mark Joyella | 6:29 pm, July 14th, 2011

» 13 comments

Just a matter of days ago, most Americans had probably never heard of the U.K. tabloid News of the World. Tomorrow, a mockup of the now deceased newspaper makes the front page of TIME, hitting newsstands across the country. “SCANDAL!” reads the headline, followed by the sub-hed “how a tabloid meltdown threatens Rupert Murdoch and his media empire.”

The cover story, by Catherine Mayer, outlines the scandal that boiled over in Britain and led to the demise of the 168-year old News of the World, and contemplated the larger impact the scandal may yet have on Murdoch and the media empire he’s steadily built over decades:

There are plenty in the global mediasphere who relish the sight of the great tabloid baron being pursued by the very paparazzi he’d paid and promoted. Murdoch’s empire, which stretches in print, broadcast and digital media from Australia across Asia and Europe to the U.S., is more than a collection of trophies, and Murdoch is more than a media honcho. In the U.S., he expanded network television by creating Fox Broadcasting; he revalued nearly every major sport by inflating the price of broadcast rights; he rewired the circuits of political discourse by devising the right-leaning Fox News Channel. And he staked his claim to muscular journalism for the ruling class when he bought the Wall Street Journal in 2007. In the U.K. in the 1970s and ’80s, he was the interloper of Fleet Street, a hated figure who bought broken newspapers and then broke the back of the newspaper unions in his effort to yank the industry into the 20th century. Murdoch won that battle and went on to pummel his rivals in an unrelenting circulation war that didn’t end until he had control of the upscale Times and the downmarket Sun as well as the News of the World.

This makes Murdoch a cultural force the likes of which we haven’t seen since William Randolph Hearst.

TIME cites interviews with “several public figures (who) wish to remain anonymous for fear of attracting reprisals or compromising future legal actions” who detail examples of how News Corp. gained access to the most intimate information from politicians, celebrities and others. The story suggests Murdoch may have sacrificed his newspaper for those misdeeds in an effort something he values more: his reputation.

News Corp., News of the World, rupert murdoch, Time

Harry Flashman

Yet another analysis from a failing magazine that would sell what’s left of its soul for a slice of Murdock’s sales.
Yoda002

When the rats start leaving the ship you know it’s starting to collapse.
Liberal Tormentor – tormenting liberals with logic and facts since 1972

Liberals are going to be disappointed yet again when in 6 months FOX is stronger than ever. Just another battle in the war on FOX by this POTUS and his buddies in the liberal media.
Skippy

18 BILLION DOWN THE DRAIN.

18 BILLION DOWN THE DRAIN TO PROTECT HIS SON.

And his empire of BS.
http://constitutionallibertarian.co.cc DavidKramer

Skippy said:
18 BILLION DOWN THE DRAIN.

18 BILLION DOWN THE DRAIN TO PROTECT HIS SON.

And his empire of BS.

What was the stock action today for News Corp? 0.37 down Hmmmm, I think I may see if it goes down some more before buying at the bottom and then selling when it goes back up. Thanks for the stock tip!
http://constitutionallibertarian.co.cc DavidKramer

Hey Mediaite, how bout getting rid of these purely Conspiracy theorist nutbags. They do not comment on the article, they are surely off their meds. Do you really want a Loughner type commenting here?
ganymede

It couldn’t happen to a nicer guy. When we paranoiac types talk about the tiny number of people who run the world, Murdoch is in the top echelon of these megalomaniacs who have done so much to divide and confuse us. In Britain, where he had enough power to intimidate nearly the entire population, once his power was broken, he suddely has zero friends except for family and his top business associates. Murdoch’s power in this country is not nearly as great, but this episode has been a wake up call for all Americans. There is nothing redeeming about most of Murdoch’s media operations here except, and, maybe, except for the Wall Street Journal. The damage and insult that he’s done in this country can best be summed up by Glenn Beck, who, if you haven’t noticed has almost disappeared from sight, and it doesn’t look like his Blaze media venture will have a long life either. Beck is a dangerous psychopath who Murdoch harnessed inorder to pander to the lowest common denominator with great success until Beck’s craziness began driving away national advertisers who did not want to be associated with the unstable Beck ‘image’. One can only hope that with the wounding of Murdoch, we may be seeing the beginning of the end of the recently resurgent rightwing power.
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DavidKramer said:
Hey Mediaite, how bout getting rid of these purely Conspiracy theorist nutbags. They do not comment on the article, they are surely off their meds. Do you really want a Loughner type commenting here?

“Liberal Tormentor” has been here longer than you have, show her some respect.
TfT

Time – not worth even reporting on, a once good magazine is not nothing but a tabloid rag itself.

Any article that deals with “anony sources” isn’t worth the paper (or screen) it is printed on.

Time Mag – a UPOS.
gefforyk

Time Magazine… Now there is a wonderful source of unbiased nonsense and lies..
gefforyk

ganymede said:
It couldn’t happen to a nicer guy. When we paranoiac types talk about the tiny number of people who run the world, Murdoch is in the top echelon of these megalomaniacs who have done so much to divide and confuse us. In Britain, where he had enough power to intimidate nearly the entire population, once his power was broken, he suddely has zero friends except for family and his top business associates. Murdoch’s power in this country is not nearly as great, but this episode has been a wake up call for all Americans. There is nothing redeeming about most of Murdoch’s media operations here except, and, maybe, except for the Wall Street Journal. The damage and insult that he’s done in this country can best be summed up by Glenn Beck, who, if you haven’t noticed has almost disappeared from sight, and it doesn’t look like his Blaze media venture will have a long life either. Beck is a dangerous psychopath who Murdoch harnessed inorder to pander to the lowest common denominator with great success until Beck’s craziness began driving away national advertisers who did not want to be associated with the unstable Beck ‘image’. One can only hope that with the wounding of Murdoch, we may be seeing the beginning of the end of the recently resurgent rightwing power.

Gany…. maybe it is time for you medicine..
J Baustian

DavidKramer said:
What was the stock action today for News Corp? 0.37 down Hmmmm, I think I may see if it goes down some more before buying at the bottom and then selling when it goes back up. Thanks for the stock tip!

NWSA seems to have leveled off at $15-16/share. Maybe you can pick it up for less, but at an EPS of roughly 12.5 it is hardly a better deal than NYT.

On the other hand, if NWSA was liquidated it would bring far more than $15, probably more than $20. So that limits the downside risk. But if you buy NYT (the New York Times Company) then there’s a chance the share price could go to zero.