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Posts Tagged ‘News Corporation’

News Corp. Has Spent $382 Million on Phone Hacking Scandal Legal Fees

News Corporation has been dealing with the ramifications of its phone hacking scandal for over two years now. During that time, it has shelled out $382 million in legal fees. That’s quite a number. We hear not being shady is less expensive, but don’t quote us on that.

The bleeding won’t likely stop there, either. In its first financial statement since News Corp. split into News Corp. and 21st Century Fox, the Press Gazette reports that the company expects to pay out at least $66 million more in legal fees. With news that Senator Jay Rockefeller might launch an investigation into News Corp., $66 million might even end up being a low estimate.

We know you’re probably feeling bad for News Corp., but save your tears. Despite paying out millions in legal fees,  News Corp. still reported $506 million profit, and total revenue was $8.9 billion. So we think it’ll be okay.

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Senator Seeks Evidence in News Corp. Phone Hacking

Jay Rockefeller, chairman of the Senate’s Commerce Committee, is putting the squeeze on News Corporation. The Telegraph reports that Rockefeller flew to News Corp.’s London headquarters to gather evidence of phone hacking. Any information obtained could then be used for a potential Senate investigation into the Rupert Murdoch media empire.

When news of the scandal broke in 2011, Rockefeller was a vocal critic of News Corp. He urged the FBI and DOJ to open investigations into the company, and they both have. Their cases — which are still underway — involve the Foreign Corrupt Practices Act, which concerns American companies bribing foreign officials.

Last year, during the Leveson Inquiry, Rockefeller wrote Judge Leveson, claiming that he was “interested in learning whether any of the conduct you are investigating falls within the jurisdiction of US laws.” It appears that his curiosity has only grown since then.

Rupert Murdoch’s Pay Drops to $28.9 Million

For News Corp.’s latest fiscal year — which ended June 30 — Rupert Murdoch saw his compensation drop from $30 million to $28.9 million. We have to ask: Why even leave the house on that kind of pay?

The only thing keeping Murdoch going is probably the $274,531 he got for the use of News Corp.’s private plane and the $15,694 he got for the use of one of the company’s cars. Otherwise, really, it’s better to just hide your face in shame.

According to The Hollywood Reporter, Chase Carey — News Corp.’s president and COO — only raked in $27.05 million, so don’t expect to see him in public until at least next year.

AllThingsD May Separate From Dow Jones

AllThingsD, the tech news site, is rumored to be working its way away from Dow Jones, the News Corp. subsidiary that owns the site. Fortune reports that AllThingsD’s contract expires on December 31, so Kara Swisher and Walt Mossberg — the founders of AllThingsD — are busy trying to find investors that might be interested in buying a stake in the site.

The asking price is rumored to be somewhere between $10 million and $15 million for a 25 percent or 30 percent chunk of the company. Swisher and Mossberg are looking at media companies, and so far three proposals have been submitted; one of which is from NBCUniversal. Other companies that were discussed include Bloomberg, The Washington Post Company and Condé Nast.

As for now, this is just speculation. Swisher and Mossberg could leave to start a new site and AllThingsD could end up remaining under the News Corp. umbrella. Either way, a source told Fortune that Rupert Murdoch “will probably make the final call on what happens.”

It’s News Corp. Split Day

Today News Corporation splits in two. On one side we have News Corp., which will oversee the publishing businesses, including The Wall Street Journal and The New York Post. The other side is 21st Century Fox, which will control the movie studio and TV properties, such as Fox Entertainment Group.

So, how are you celebrating the split? In the past, we’ve suggested a double ice luge shaped like Rupert Murdoch, but what about pin the tale on the new logos?

We’re excited to hear what you have in store. If nothing else, at least crack open a Zima and reminisce.

News International Changes Name to News UK

News International, the company probably best known for phone hacking, is getting a name change. According to The Guardian, the company has been renamed News UK, just one day before the big News Corp. split.

News UK will remain part of News Corp., the publishing arm of the company. News UK’s papers include London’s The TimesSunday Times and The Sun. Mike Darcey, News UK’s CEO, said the company was “determined to secure a sustainable future for professional journalism around the globe.” And please don’t bring up that hacking stuff anymore, that was the old company.

As you can see, the new name came with a new logo, which is based on the revamped News Corp. logo. More cursive! Someone please put a stop to this.

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Rupert Murdoch Files for Divorce, Won’t Affect News Corp Split (Deadline Hollywood)
News Corp Chairman/CEO Rupert Murdoch filed for divorce from wife Wendi Deng Murdoch Thursday morning in New York State Supreme Court, Deadline learned at 9 a.m. The divorce will not impact Rupert’s mega-media holdings, according to insiders, and was deliberately announced for maximum transparency before News Corp spins off its publishing assets into a separately traded company by June 28. WSJ Nearly all of the Murdoch family’s voting stock — a block of 38.4 percent — is held through the Murdoch Family Trust, whose beneficiaries are Rupert’s six children. It is likely that a prenuptial agreement makes it impossible for Wendi to obtain voting shares in the company in the event of a divorce, an attorney familiar with New York laws said. The attorney added that a New York judge would probably not award her any stock in court, as New York courts generally don’t keep people as partners in business when they can’t stay partners in marriage. TVNewser The couple married in 1999, 17 days after Rupert’s divorce from his second wife was finalized. They have two daughters together: Grace, 11, and Chloe, 9. Wendi, who is the chief of strategy for MySpace in China, famously slapped a man who attempted to attack Rupert during his testimony in front of a British Parliament committee about phone-hacking at his London newspapers. NY Mag / Daily Intelligencer For years, it seemed apparent to Rupert’s lieutenants that he was living a separate life from Wendi and was OK with it. Wendi, for her part, seemed happy, too. Wendi reinvented herself as an alpha mom and Hollywood personality, striking up friendships with a diverse circle that included Sergey Brin and Nicole Kidman. THR A spokesperson for former British prime minister Tony Blair flatly denied media rumors that Wendi was romantically involved with him. FishbowlNY Is a new, future ex-Mrs. Murdoch just around the corner?

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David DeVoe to Retire from News Corp.

David DeVoe, CFO of News Corporation, will retire from the company after it splits, on June 28. He will retain his seat on News Corp.’s board of directors, a spot he has held since 1990.

Succeeding DeVoe is John Nallen, who will be named senior executive VP and CFO of 21st Century Fox, the entertainment side of the News Corp. split. Nallen has been with News Corp. for 18 years. His appointment will be effective July 1 and he’ll report to Chase Carey and Rupert Murdoch.

In a statement, Murdoch said of DeVoe, “I would like to express my profound gratitude to Dave for his enormous contributions to News Corp. over nearly three decades in which he has played a pivotal role in building the Company into a global leader. He is a world-class executive whose stellar financial stewardship can be credited for the enviable financial position we’re in at this exciting time in the company’s evolution.”

News Corp. Debuts New Logo

News Corporation has decided that with the split fast approaching, it was time for a new logo. According to a memo (clocking in at 643 words!) obtained by Jim Romenesko, the new brand identity is “based on the writing of Rupert and his father.”

We think the new logo is fine, even if it does remind us of Pepe Jeans, Jason Priestley’s denim of choice.

News Corp. Revenue Rises Thanks to Fox News, Movies

News Corporation just reported its third quarter earnings, and once again, things are looking good for the media behemoth. Well, at least parts of it. For News Corp.’s fiscal third quarter revenue jumped 14 percent to $2.85 billion, but it would have been higher if not for a $45 million loss posted by the company’s publishing brands.

In the end, News Corp. said that about 55 percent of its revenue growth is from entities such as Fox News, 20th Century Fox and FX.

That will make things all the more interesting when the big split happens. The division is expected to take place at the end of June, with 21st Century Fox controlling the movie studio and TV properties and News Corp. controlling The Wall Street Journal, The New York Post and more.

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