Company Profile: News Corporation
News Corporation was created in 1979 by Rupert Murdoch as a holding company for News Limited, which was created by Murdoch from the assets he inherited in 1952 following the death of his father, Sir Keith Murdoch, and subsequent expansion.
News Corp is based in New York, New York. It operates as a diversified media company worldwide, in eight segments:
• Filmed Entertainment – principally consists of the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of television programming worldwide.
• Newspapers and Information Services – consists of the publication of national newspapers in the United Kingdom, the publication of approximately 146 newspapers in Australia, the publication of a metropolitan newspaper and a national newspaper (with international editions) in the United States and the provision of information services.
• Book Publishing – publication of English language books throughout the world.
• Television – consists of the broadcasting of network programming in the United States and the operation of 27 full power broadcast television stations, including nine duopolies, in the United States.
• Cable Network Programming – the production and licensing of programming distributed through cable television systems and direct broadcast satellite operators primarily in the United States, Latin America, Europe and Asia.
• Direct Broadcast Satellite Television – consists of the distribution of basic and premium programming services via satellite and broadband directly to subscribers in Italy.
• Integrated Marketing Services – publication of free-standing inserts, which are promotional booklets containing consumer offers distributed through insertion in local Sunday newspapers in the United States, and the provision of in-store marketing products and services, primarily to consumer packaged goods manufacturers in the United States and Canada.
• Other – principally consists of the Company’s digital media properties and News Outdoor, an advertising business which offers display advertising in outdoor locations primarily throughout Russia and Eastern Europe.
Major Global Holdings:
• 20th Century Fox (Fox Broadcasting Company, 20th Television)
• News International (UK - The Sun, The Times, Sunday Times)
• News Limited (Australia)
• New York Post
• Wall Street Journal
• HarperCollins
• National Geographic
• 40% of BSkyB
Key Indicators:
• 2010 Revenues - $32.8B
• 2010 Operating Income - $3.7B
• 2010 Net Income - $2.6B
• Total Assets - $54.3B (as of Dec. 31st, 2010)
• Shareholder’s Equity - $25.5B (as of Dec. 31st, 2010)
• Employees - 51K (as of Dec. 31st, 2010)
Board of Directors
• Rupert Murdoch – Chairman and Chief Executive Officer, News Corporation
• José María Aznar – Former President of Spain, President FAES - Foundation for Social Studies and Analysis
• Natalie Bancroft – Director, News Corporation
• Peter Barnes – Chairman, Ansell Limited
• Chase Carey – Deputy Chairman, President and Chief Operating Officer, News Corporation
• Kenneth E. Cowley – Chairman, R.M. Williams Holdings Pty. Limited
• David F. DeVoe – Chief Financial Officer, News Corporation
• Viet Dinh – Professor of Law, Georgetown University
• Rod Eddington – Non-Executive Chairman for Australia and New Zealand, J.P. Morgan
• Joel Klein - Executive Vice President, CEO, Education Division, News Corporation
• Andrew S.B. Knight – Chairman, J. Rothschild Capital Management Limited
• James Murdoch – Deputy Chief Operating Officer, News Corporation. Chairman and CEO, International, News Corporation
• Lachlan Murdoch – Executive Chairman, Illyria Pty Ltd
• Thomas J. Perkins – Partner, Kleiner, Perkins, Caufield & Byers
• Arthur M. Siskind - Senior Advisor to the Chairman, News Corporation
• John L. Thornton – Professor and Director of Global Leadership, Tsinghua University of Beijing
• Stanley S. Shuman (Director Emeritus) – Managing Director, Allen & Company LLC
News of the World Scandal - Key Players:
• Rupert Murdoch – News Corporation Chairman and Chief Executive Officer; Owner
• James Murdoch – Deputy Chief Operating Officer, News Corporation. Chairman and CEO, International, News Corporation; Rupert’s Son
• Rebekah Brooks – News International Chief Executive Officer
• Andy Coulson – the editor of the News of the World from 2003 until his resignation in 2007, following the conviction of one of the newspaper's reporters in relation to illegal phone-hacking. He subsequently joined David Cameron's personnel as communications director, until announcing his departure on 21 January 2011 because of continued media coverage of the phone-hacking affair
• Sir Paul Stephenson – the head of Scotland Yard until his resignation on July 17th 2011.
News of the World Scandal – Events to date:
• July 4th 2011, the Guardian broke the story of Sunday tabloid, The News of the World, allegedly targeted Miss Dowler’s phone in March 2002 shortly after the 13-year-old schoolgirl went missing from streets near her home in Walton-on-Thames, Surrey.
• July 5-6th 2011, the story unfolds where more allegations and stories revealed. Rebekah Brooks, News International CEO, says she is “appalled and shocked”
• July 7th 2011, News Corp closed down the ‘News of the World’ newspaper in Britain due to allegations of phone hackings. Last edition was published on July 10th 2011 after 168 years of operations.
• July 13th, 2011, News Corp withdrew its bid to purchase the final 61% stake in BskyB after pressure from both the Labour and Conservative Parties in Parliament
• July 14th 2011, the FBI opened a probe into the hacking of 9/11 victims and ethical practices of News Corp holdings
• July 15th, 2011, Brooks announces she has resigned as chief executive of News International.
• July 15th 2011, Les Hinton, chief executive of the media group's Dow Jones, resigned and apologized to those hurt by the actions of the News of the World.
• July 17th 2011, Met police commissioner, the head of Scotland Yard, Sir Paul Stephenson resigns.
• July 17th 2011, Brooks arrested on suspicion of phone hacking and corruption
• July 18th 2011, Assistant Met commissioner John Yates quites.
• July 19th 2011, British Commons hearing for Rupert and James Murdoch, and Rebekah Brooks