the future of Fox

[OhioMediaWatch]

Or, sells off the Fox O&Os to another party, with a built in long term affiliation agreement (as with Local TV LLC) to keep them with the network.

But there are a lot of steps between Murdoch's U.K. empire being in trouble and the Fox O&Os being stripped from him. Go buy a lottery ticket, you'll probably have better odds.

 

[microbob]

Where there's smoke there is fire as the old saying goes. you never know how far this could spread.

 

[Robnoxious]

Just because News Corp's NOTW got caught wiretapping and hacking it doesn't mean other entertainment and news conglomerates aren't practicing the same tactics. I'm not so sure we really want to know how deep the rabbit hole goes.

This need to obtain salacious details by any means necessary in order to sensationalize and exploit a story for ratings or newspaper sales (read: profit) has done nothing but hurt the once proud integrity of journalism. Integrity and journalism might as well be listed in Roget's Thesaurus as antonyms of each other.

 

[recto101]

How about put all of News Corp's US properties into recievership until a new owner comes in.

 

[recto101]

Why not put the My Network tv properties on Sale away from Fox.

 

[LKellerIII]

How about put all of News Corp's US properties into recievership until a new owner comes in.

There's no legal justification for doing that. At least based on what we know so far, any crimes committed by News Corp employees were in England. If American illegalities are eventually found, the FCC could potentially give News Corp trouble over any broadcast TV licenses they own, but couldn't touch their cable networks, print publications, etc.

 

[therealjm12]

Why not put the My Network tv properties on Sale away from Fox.

You might be doing FOX a favor on that deal!

 

[fybush]

How about put all of News Corp's US properties into recievership until a new owner comes in.

There's no legal justification for doing that. At least based on what we know so far, any crimes committed by News Corp employees were in England. If American illegalities are eventually found, the FCC could potentially give News Corp trouble over any broadcast TV licenses they own, but couldn't touch their cable networks, print publications, etc.

There's plenty of legal justification for that. News Corporation is incorporated in Delaware, and is therefore a US company. Rupert Murdoch is a US citizen. I believe James Murdoch is as well. There is precedent for a holder of US broadcast licenses being found of unfit character based on crimes committed abroad by divisions unrelated to broadcast; that's a big part of what brought the RKO broadcast operation down.

I don't think we know yet just how far this scandal will go. Two weeks ago, I don't think anyone would have predicted the closure of News of the World. Now there's very serious talk that Murdoch may unload his entire UK newspaper operation.

It doesn't help him any that his US broadcast licenses are dependent, for the moment, on a number of short-term waiver scenarios: the Fox O&O TV stations as a group have had their license renewals held up from the last cycle by the ongoing indecency litigation. WNYW and WWOR are further dependent on ongoing short-term waivers of their crossownership with the New York Post, and WWOR is constantly in the sights of NJ lawmakers over its coverage (or lack thereof) of its nominal home state.

If the phone-hacking scandal turns out to result in serious criminal prosecution of Murdoch or his top executives in the UK, as seems likely, or if it's found to extend to criminal activity in the US, it's much easier simply to decline to extend a waiver than it is to revoke a license. I think there's ample reason for Murdoch to be concerned.

(And yes, it's quite true that the Fox cable channels, the movie studio and the TV network itself aren't directly subject to FCC action. But it's important to remember that it wasn't government action that brought down News of the World so quickly - it was a massive storm of public fury that manifested itself in a sort of shaming that led advertisers to pull out en masse. No advertisers=no business, and down went NotW.)

 

[LKellerIII]

Thanks for that thoughful post, Scott Fybush. I always respect your knowledge and opinions...but a couple of thoughts/questions;

Is there any real possibility that Murdoch himself could be prosecuted in England? I don't think he could be prosecuted in the US for crimes comitted by staffers in his employ unless it could be proven that he had knowledge - but I realize England has a different justice system.

As to "public fury"- do you really think the bad publicity would really affect public perception of his American networks among viewers here? Personally, I would like to see it happen (I'm no fan of Murdoch or "Faux News"), but I think that's unlikely. I can't see your average Fox News viewer suddenly tuning out because of an English scandal. Or using myself as an exmaple, as much as I dislike Murdoch and News Corp, will I stop watching first-run episodes of Family Guy or Raising Hope? Not likely

As for "bringing down" News of the World - it was that tabloid that was at the heart of the scandal, not the Fox network or Fox News. And has already been stated by others - the newspaper business is dying - I doubt NW would have been one of News Corps major assets going forward, even if the scandal hadn't been exposed.

 

[landtuna]

Is there any real possibility that Murdoch himself could be prosecuted in England? I don't think he could be prosecuted in the US for crimes comitted by staffers in his employ unless it could be proven that he had knowledge - but I realize England has a different justice system.

Murdoch has already been prosecuted having lost his buy-in of BSkyB. That was a major goal and not only is it gone but is it possible the fallout may include some of his other newspaper holdings as well.

As for his knowledge of the cell phone hacking....pure conjecture on my part but everybody in his employ surely had to realize that was illegal (not to mention immoral). While he may not have green-lighted the cell phone hacking specifically he surely had to have given his subordinates permission to "do what they had to do" to get the story.

As to "public fury"- do you really think the bad publicity would really affect public perception of his American networks among viewers here? Personally, I would like to see it happen (I'm no fan of Murdoch or "Faux News"), but I think that's unlikely. I can't see your average Fox News viewer suddenly tuning out because of an English scandal. Or using myself as an exmaple, as much as I dislike Murdoch and News Corp, will I stop watching first-run episodes of Family Guy or Raising Hope? Not likely

The public fury was in two parts - the most publicized hacking was the phone of a murdered teenage girl so the public was up in arms about that incredible lack of sensitivity. Had it been a dirty politician maybe not so much. Secondly, Murdoch has a reputation for going after politicians and now they have dirt on him. Revenge can be a wonderful thing and they are taking full advantage of it.

As for "bringing down" News of the World - it was that tabloid that was at the heart of the scandal, not the Fox network or Fox News. And has already been stated by others - the newspaper business is dying - I doubt NW would have been one of News Corps major assets going forward, even if the scandal hadn't been exposed.

NOTW was not a huge asset of the Fox kingdom but it was profitable and does represent the tip of an iceberg insofar as his news operation goes. It is worth asking, as many on both sides of the Atlantic are doing now, if his same sense of "business" extends into his other holdings. If so, it could be the end of News Corp. as we know it. In the short term it has already put an end to Fox expansion in the U.K.

 

[tripinva]

Is there any real possibility that Murdoch himself could be prosecuted in England? I don't think he could be prosecuted in the US for crimes comitted by staffers in his employ unless it could be proven that he had knowledge - but I realize England has a different justice system.

In the US, he may not be personally liable, but I don't know the particulars of the Foreign Corrupt Practices Act other than that it applies to both legal and natural persons, so News Corp could be liable as a whole.

- Trip

 

[FreddyE1977]

Seems to me someone is going to have to produce a smoking gun that proves Murdoch had advance knowledge of and/
or approved the hacking operation at News of the World. And I highly, highly doubt any such thing is going to be
forthcoming.

And if he was stupid enough to do such a thing he fully deserves whatever happens to him as a result.

Certain people are going to launch noisy investigations to serve various political agendas, but eventually this will
all die down with little having changed at News Corp.

 

[KeithE4]

Seems to me someone is going to have to produce a smoking gun that proves Murdoch had advance knowledge of and/or approved the hacking operation at News of the World. And I highly, highly doubt any such thing is going to beforthcoming.

And if he was stupid enough to do such a thing he fully deserves whatever happens to him as a result.

Certain people are going to launch noisy investigations to serve various political agendas, but eventually this will all die down with little having changed at News Corp.

Per Fox News Channel, the FBI is looking into the 9/11-hacking possibility, per the request of Rep. Peter King (R-NY).

Link: FNC

 

[Nate Wesley]

As to "public fury"- do you really think the bad publicity would really affect public perception of his American networks among viewers here? Personally, I would like to see it happen (I'm no fan of Murdoch or "Faux News"), but I think that's unlikely. I can't see your average Fox News viewer suddenly tuning out because of an English scandal. Or using myself as an exmaple, as much as I dislike Murdoch and News Corp, will I stop watching first-run episodes of Family Guy or Raising Hope? Not likely

I'm no fan of Fox News either, but I can still effectively ignore them (you have to manually tune to cable channel 45 on all of my TVs). I have more of a long-term worry that other media organizations are [or, are willing to go] with such gutter tactics to get such stories in the future.

 

[fybush]

Thanks for that thoughful post, Scott Fybush. I always respect your knowledge and opinions...but a couple of thoughts/questions;

Is there any real possibility that Murdoch himself could be prosecuted in England? I don't think he could be prosecuted in the US for crimes comitted by staffers in his employ unless it could be proven that he had knowledge - but I realize England has a different justice system.

I'm not a lawyer of any kind, and while I know a little about FCC law, I know very, very little about the Foreign Corrupt Practices Act. I don't think it would take prosecution of Murdoch, personally, to trigger a character case against the Fox stations; after all, Murdoch personally isn't the licensee, "Fox Television Stations" is, and by extension its parent company News Corp. I think a study of the General Tire/RKO precedent will show that criminal prosecution of a foreign arm of a US licensee has, at least in the past, been sufficient to cast character questions on that US licensee.

As to "public fury"- do you really think the bad publicity would really affect public perception of his American networks among viewers here? Personally, I would like to see it happen (I'm no fan of Murdoch or "Faux News"), but I think that's unlikely. I can't see your average Fox News viewer suddenly tuning out because of an English scandal. Or using myself as an exmaple, as much as I dislike Murdoch and News Corp, will I stop watching first-run episodes of Family Guy or Raising Hope? Not likely

As for "bringing down" News of the World - it was that tabloid that was at the heart of the scandal, not the Fox network or Fox News. And has already been stated by others - the newspaper business is dying - I doubt NW would have been one of News Corps major assets going forward, even if the scandal hadn't been exposed.

Don't underestimate the value of News of the World or the UK newspapers in general - or rather, just look at the hit that News Corp. has taken on the markets since shutting down the paper and forfeiting what I believe was billions of pounds of value. Circulating 2.5 million copies every week in one of the world's most competitive newspaper markets is still awfully impressive, "dying industry" or not.

As for the larger question of public impact, I think it's just too soon to say. For all his holdings and his power here, Murdoch has never been the all-consuming political/media force in the US that he is in the UK. I don't think US politicians cower in fear of the New York Post or even Fox News in quite the same way UK politicians are (or were) in thrall to the Sun and to News of the World.

But if something's primed to explode, all bets may be off. The UK hacking scandal was bubbling under for years, but as long as it only affected politicians, the UK public seemed inclined to shrug it off. It took more revelations about hacking of murder victims' phones to tip the scandal into something much bigger. It may be that the reports of 9/11 victims' phones being hacked will have the same effect here. The timing certainly couldn't be worse for Murdoch and News Corp, what with the tenth anniversary coming up in September - and there's no shortage of politicians on both sides of the aisle apparently ready to pile on.

 

[landtuna]

And don't forget there is a criminal element to the U.K. scandal which was that the tampering with the cell phone of the murdered child impeded the police investigation. I saw earlier today a report saying Scotland Yard had 7 people under arrest in that investigation. The report did not identify the individuals.

 

[Sammi Brie]

My biggest question is with regards to the Fox O&O stations. Would they pull a WLBT or WHDH/WNEV on a license loss, in which new ownership would take on the stations? Would they be sold to other station groups? Would they all become independent outlets or a station chain of their own? They'd be one of the hottest market properties in years, with New York, LA, Chicago, Philly, Phoenix, Houston, Baltimore, Dallas, Boston, Austin, and Orlando properties on the block.

I can easily see the FCC putting the skids on many potential buyers because this would be a station group sale of the century. Many big market owners would not be able to swallow the package whole. (Post-Newsweek, Belo, Gannett, Cox, Sinclair, Meredith, Local TV, Raycom Media, Scripps, Sunbeam, Nexstar, LIN TV, Hearst, and Media General would all have to divest at least one station — for Belo, the number is closer to four or five, and it's also multiple stations for P-N and Scripps and Gannett and either of the Big Three networks.) That leaves only Journal, which already has problems with money; Citadel; and a few other minor station groups to pick up the tab.

A potential Fox Sports dismantling would immediately put the NFL, MLB, the Pac-12 and NASCAR in a critical lurch involving their sports packages. The Fox Sports RSNs would be hot property, and I can see Comcast buying in certain markets to achieve synergies with their cable operations.

 

[arnoldevns]

This is a preposterous thread.

 

[mescutia]

The speculation in this thread is getting ridiculous. It is way, way too early to be speculating about potential buyers for the various News Corp properties. Seriously.

I think we all need to keep a few things in mind:

1) As has been said before, this scandal doesn't automatically directly affect News Corp's US properties, no matter what the far left says. It is entirely possible that this scandal is contained entirely in NOTW.

2) For those of you who are daydreaming about Fox News being sold, who's to say that any theoretical buyer would bring it in line politically with the (mostly liberal) mainstream media? Remember, Rupert Murdoch himself is a liberal who started Fox News because he saw a moneymaking opportunity.

3) There are honest, hard-working people who work at various News Corp properties, including the Fox O&O stations and the movie and TV studios. Not even counting the studios, all that pipe-dream dismantling would put a LOT of people out of work. And if the Fox movie and TV studios were dismantled and sold off in pieces, the economic fallout would far outweigh the perceived political benefits of News Corp's demise.

 

[tripinva]

The speculation in this thread is getting ridiculous. It is way, way too early to be speculating about potential buyers for the various News Corp properties. Seriously.

Agreed.

I think we all need to keep a few things in mind:

1) As has been said before, this scandal doesn't automatically directly affect News Corp's US properties [...]. It is entirely possible that this scandal is contained entirely in NOTW.

I may be misunderstanding your point, but...

Even if it is contained to News of the World, bribery of a foreign official, as has been alleged, by a corporation based in the US (News Corp is incorporated in Delaware) falls under the Foreign Corrupt Practices Act. Now, whoever is in charge of prosecuting may choose not to bring the charges, but in my mind it seems pretty straightforward how it can directly impact the US properties.

- Trip