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Searching For Murdoch In Plain Sight

By Staci D. Kramer - Mon 25 Jun 2007 07:10 PM PST

Thousands of words in the NYT’s two-parter on Rupert Murdoch’s business style and precious few of them really new. Anyone who is likely to care already is fully aware that Murdoch knows how to woo politicians on nearly every continent, that his efforts in China have had mixed results even when giving into the government and that he isn’t interested in spending billions on a paper he can’t run. News Corp. has tremendous political power and Murdoch isn’t shy about wielding it. Part One | Part Two. (News Corp.’s vivid response to the NYT is in part two.)

Meanwhile the New Yorker‘s Ken Auletta draws on his deep knowledge both as a journalist on New York magazine when Murdoch was about to buy it and as a journalist whose coverage of Murdoch as a modern-day pirate earned a spot on the “no interview” list. Auletta: “To try to forestall a Murdoch takeover of New York magazine thirty years ago, about forty writers and editors and art directors went on strike. I was at the magazine then, and, with delusions that I was on a diplomatic mission, led a small delegation to visit Murdoch’s outside counsel, Howard Squadron. I was certain that, once Murdoch understood that the staff would leave, he would retreat. Squadron listened politely, and replied, “You don’t understand. If you leave, Rupert will replace you like he replaces furniture.”

Still, in the case of Dow Jones, Murdoch has made a lot of the right noises about wanting people to stay. When he made his first direct approach at breakfast with DJ CEO Rich Zannino, Murdoch said he would keep on the management team. He has talked of wanting to keep Gordon Crovitz, corporate media group head and the WSJ franchise, and being willing to have an independent board for the WSJ. But Auletta’s story is also full of examples of how an owner can steer from a distance. If—and it’s really looking more like a when—News Corp. acquires DJ, Murdoch won’t have to walk in the newsroom or talk to an editor to make his presence felt.

Posted in: Companies, News Corp., WSJ-DJ, VC+M&A


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1 Response:
  • From Baba Guhan Tue 26 Jun 2007 07:45 AM

    I find it fascinating that people take strong positions on Mr.Murdoch in liking him or disliking him.
    I wonder those who do have such strong opinions one way or another, do they own any stock in any of Mr.Murdoch’s holdings and if so benefit from it’s valuation rise.
    I believe that if one were to do a critical examination of every person who claims to be self made like Mr.Murdoch or Mr. Gates they all have somethings in common. One I doubt they could stand in front of the mirror and state to themselves as being honest to themselves.
    Mr.Murdoch may have a strong conservative view point and expresses that view through the ownership of various media holdings. If society finds that repugnant, then society could decide to boycott those holdings.
    I find it very appalling for people to bitch and moan about how Fox News operates. If one doesn’t like it one can avoid it, we don’t live in a dictatorship where we have that choice only and even then if it got really bad throughout history we can see revolutions taking place to overthrow such institutions.
    If Mr.Murdoch offers the right price, and DJ agrees then thats all that counts. If the enterprise is not run the way it should be run then it shall not deliver the results that Mr.Murdoch wants and may be he will change his operating principles.
    If one doesn’t like the shenanigans of Mr.Murdoch then I would say don’t partake in activities with him.

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