Decline of a dynasty? Elisabeth Murdoch ducks board position on News Corp

August 6, 2011

Elisabeth Murdoch has declined an invitation to be nominated for a place on the board of News Corp. The move signals a decline in the prospects of a Murdoch dynasty

Rupert Murdoch’s actions over a period of years suggests his intentions of establishing a Murdoch dynasty at News Corp. The story has all the drama of a TV soap opera with a dash of reality TV as well. Part of the interest has been over which sibling would be most favoured to succeed the tycoon.

Any Murdoch is better than none

It has been suggested by biographers that any Murdoch would be prefered to someone outside the family. This is harder to achieve in a world in which there are interested parties or stakeholders. These extend to institutional investors, and governments concerned with Corporate responsibilities for ethical governance.

As might be expected, the eldest son Lachlan was front runner for heir to Rupert before signalling his reluctance to pursue a career in News Corp although remaining on the board. This placed youngest son James as a front runner in the speculation stakes. The 2011 problems of governance in the proposed takeover of Sky may have weakened the chances of James, but arguably have weakened the chances of all the Murdoch family to take over at the top of News Corp.

Elisabeth

Rupert Murdoch has no prejudice against women as business leaders. Elisabeth Murdoch was for a while a front-runner as his heir, and has demonstrated considerable leadership flair in creating her own media businesses. However, Elisabeth has, like Lachlan implied that her interests would lie outside the top job at News Corp. However, her interests have remained intertwined with those of her father.
Although allegations of nepotism have been made, there can be little doubt of her capabilities to manage large media operations.

According to the BBC

News Corp said Elisabeth Murdoch, 42, told [News Corp] directors that it would be “inappropriate” to join the board. She was expected to join the News Corp board after it bought Shine Group, the television production company she runs.

Prudence

Rupert’s eldest daughter Prudence MacLeod sits on the board of Times Newspapers Ltd, part of News International.

Then there’s Wendi

Rupert’s formidable wife Wendi has been considered a serious candidate for some while. A trust-fund established for their children has become a critical aspect within the power relationships in the extended family.

Leaders born and made

Dynasties provide rich materials for students of leadership. The eventual winners in the succession stakes sometimes justify what others call nepotism. Often however, second and third generation family members lack the entrepreneurial flair of the founders.


Murdoch Meltdown

July 17, 2011

Elisabeth Murdoch and father Rupert

In three turbulent weeks in July 2011, Rupert Murdoch faced a complete meltdown of his global corporation News Corp. The crisis has a timeline which can be traced to the imprisonment in 2004 of a few ‘rogue’ journalists in one newspaper, the News of the World. This spread to allegations of a culture of corruption and phone hacking at the NOTW, and its closure. The story continued to spread with political fallout reaching the wider global corporation

We concentrate on the turbulent weeks at the start of July 2011, after briefly reviewing the wider timeline of events.

BBC Timeline

The BBC gave a good summary of the timeline of events from 2000 to July 20th 2011. although for whatever reason, overlooked the dimension of police corruption which is also to be found within the story. The Timeline It begins with the appointment of Rebekah Wade (later Rebekah Brooks) as editor of News of the World in May 2000, and ends with her resignation as Chief Executive of News International, July 15th 2011

Resignation of a News Corp executive fuels the wider story

Within hours of Rebekah Brooks tendering her resignation as head of News International, her predecessor Les Hinton, one of Rupert Murdoch’s closest lieutenants in the United States, fell on his sword, saying that the pain his reporters had inflicted on innocent people was “unimaginable”. Mr Hinton has been the publisher of The Wall Street Journal since Mr Murdoch bought it in 2007 and his continuing presence was threatening to drag the media mogul’s prize US newspaper asset into the scandal.

Two symbolic events

Two events received particular media attention. They were presented as reflecting a callous culture, which ignored the impact of behaviours on members of the public who were already victims of tragic events. Each story involved journalists who had targeted families of victims of highly emotive tragedies. In the UK, the definitive episode involved tampering with the mobile of the murdered teenager Millie Dowler which may have given false hope to the family. Rupert Murdoch was to meet and apologise personally.

In the USA, allegations developed of hacking of phones of families of victims of the 9/11 World Trade Center bombings.

An unfinished case

This post ends [17th July 2011] at the start of a week which promises more in the unfinished drama surrounding Rupert Murdoch and the business empire he founded. One interesting theme is being reported concerning his daughter Elisabeth, on whom it is reported he is now pinning his hopes to take the dynasty forward. This is certainly consistent with a story that has cropped up from time to time within biographic accounts.


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