Schumpeter: Sailing through a scandal

IT MUST all seem like a distant nightmare now. After the revelations of phone-hacking at the News of the World emerged in 2011, Rupert Murdoch was hauled before Parliament, calling it “the most humble day of my life”. Executives and journalists were arrested. The scandal prompted Mr Murdoch’s News Corp to drop a cherished plan to buy out the other investors in BSkyB, a satellite broadcaster (since renamed Sky). Some predicted that the affair, which included the hacking of a murdered schoolgirl’s voicemails, could be Mr Murdoch’s and his firm’s undoing.However, corporate karma turns out to be more lenient than business schools lead students to believe. Far from watching their empire crumble, Mr Murdoch and his family have more than doubled their wealth since the scandal broke. Mr Murdoch, who is 83, remains firmly in charge, and his sons, Lachlan and James, seem better placed than ever to succeed him one day.The Murdoch clan’s resilience points to an overlooked reality in business: sometimes a loss can turn into an unexpected win. The crisis forced Mr Murdoch, a devoted newspaperman, to make difficult choices that he never would have in…

Link to article: www.economist.com/news/business/21636753-why-phone-hacking-affair-has-left-rupert-murdoch-better-sailing-through-scandal?fsrc=rss%7Cbus

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload the CAPTCHA.