Can Murdoch still control his $42B media empire?

(CBS News) 

The overriding question at Tuesday's hearing in London on the phone hacking scandal at News Corp. went unanswered: Can Rupert Murdoch maintain control of his worldwide empire that is now valued at $42 billion?

CBS News correspondent Anthony Mason reports that Rupert Murdoch has used his vast media empire to gain access to the world's most powerful leaders and to influence the election of presidents and prime ministers.

In response to an inquiry about his frequent meetings with prime ministers, Murdoch joked: "I wish they'd leave me alone."

Who's who in the Murdoch phone hacking scandal
Rupert Murdoch: "Ashamed," but not responsible
Special Section: Murdoch in Crisis

While the idea may be funny to Murdoch, those world leaders may want to leave him alone now.

"I think Rupert Murdoch has been hugely damaged by this," says Charlie Beckett with the London School of Economics.

Beckett says Murdoch's image as an all-conquering media tycoon has been undercut by questions, like: "Why didn't he know? Why didn't he do something about it? Who's in charge of News Corporation?"

Murdoch built News Corporation from a single family owned newspaper in South Australia. In the 1960s, he moved into Britain, buying up "The News of the World" and later "The Times of London." In the 70s, he took aim at America, where he'd add "The New York Post" and, more recently, "The Wall Street Journal." His satellite TV empire includes the Fox network in the U.S., Sky in europe and Star TV in Asia.

"I love the free market. It's certainly been very good to me," Murdoch once said.

The same market is now punishing him. While stock in News Corporation rebounded today, it has fallen 12 percent since the scandal began.

"My company has 52,000 employees. I have led it for 57 years and I have made my share of mistakes," Murdoch admitted at Tuesday's hearing.

Murdoch defiant: I'm best person to fix mess
Murdoch hit with apparent foam pie at hearing
Who's heir to the Murdoch empire?

Those mistakes might sink another CEO, but Murdoch still controls 38 percent of the voting stock of News Corporation. But he does not own a controlling interest in his reputation, says Vanity Fair's Sarah Ellison.

"To the extent that he can survive as the same kind of powerful entity I think is really in question. The spell is broken. The people who believed in him as a genius business executive, now really don't anymore," Ellison says.

Only recently, Forbes magazine ranked Murdoch the 13th most influential person in the world. That ranking is likely to fall now with the company's stock price. News Corporation's board may be forced to ask whether the company's chief asset has become a liability.

[JRC_903]

I would guess when when a "powerful tycoon" like this man is reduced to having to claim ignorance over and over again to avoid the obvious admissions, then something will have to give. Like some massive coronary blockage that can not be removed---it will have to be bypassed.

[cattiej]

I enjoyed seeing Murdoch wife punch the guy who was trying to thow a pie at her husband..this woman must really be mean..she certainly doesn't show much of being a lady..she really watches everything Rupert says and I think she probably tells him what to so..he is after all 80 and she is in her 40's...I think she is the dangerous one in this family..she's in it for the money and being able to dress like a queen..I was especially interested on how she came here from China as a baby sitter and had an affair with the Dad of the kids she was babysitting for, he got a divorce and married her...that's how she got her green card...of course she didn't stay married to him long. Wasn't there another husband along the way before Rupert Murdoch? Any case of a woman controlling an older man and he is stupid enough to let her..I'll be there will be a big fight about money when Rupert dies between her and his son from a previous marriage. They may be rich but I think their morals are in the toilet...I wouldn't invite them to my dogs birthday party........

[frankblank]

Yeah, him or someone like him will keep it going. The suckers of *** News and the NY Post will keep the yankee dollars rolling in. So the lies and all the strokes of petty hatreds will keep on rolling out to the fans and the rest of the corporate media, like CBS, will be too intimidated to challenge them. "I don't know, how was I supposed to know. It went on for years and millions in bribes and hush money was paid, but I just run the place, I didn't know." That's his testimony.

Except, of course, for the moment when he interrupted his son in mid-sentence in order to report that this was his, Rupert's, most humble day. Sonny Boy should have clocked the old swine.

[Black banana]

"I never had sex with that woman".

[cameraphone]

This is just another example of a CEO or owner of a corporation who say they merit the really really huge salaries they get for managing such a huge business, but then deny that they don't have any responsibility whenever the corporation they run afoul of the law or ethics.

[esq777]

He's the prototypcial conservative -- all about "personal responsibility," except of course when it comes to taking even an ounce of it himself. It will be a great day if this guy and his kid end up being perp-walked out of News Corp. headquarters with raincoats over their heads into a waiting cop car.

[frankblank]

Personal responsibility does not apply to the rich, nor to those affiliated with *** News or the republican party.

[lucifersshadow]

Whatever happened to the anti-trust laws? And this we get as a result of ignoring them.

[frankblank]

Folks like rupert purchased the assassination of the anti-trust laws, and more to the point, the laws forbidding media concentration and the laws forbidding vertical integration (producer-distributor-display venue) of media (then movie) companies.

[RAS08]

Amazing... no one knows anything as of yet and everyone who hates FOX is eager to place blame right now. Just look at some of the headlines. He's guilty before anything is known about anything. No bias here.

[RAS08]

No matter how you explain it, if he didn't know about it, he can't be held personally responsible for the actions of others. A man in his position can not possibly account for every employee he has and what they may be doing at any time. To think he can is just plain silly.

[frankblank]

Not only do people know tons of things, like millions in bribes and hush money being paid,but people have known those things for years.

Repeat: People have known this stuff for years. Whether Rupie Rich gets jammed up for it or not, it is patently obvious that he knew about those things, too. So the bias, my good tickle brain, is all yours. Sorta like some mafia guy's flunky, supplying a transparently silly alibi.

[Jhihmoac]

Other way around...The media empire he created took control of him, or his senses, at least...

[Socialization]

What a stupid title to this article. Only in CBS's dreams.....

Fox kicks CBS's %$^%$^%$

[KPeters_from_UK]

What a stupid comment. Do you have anything constructive to add? You need to talk to his shareholders small and large. What about the stock? How much has he lost? I do know that the attitude of political Britain has been changed completely due to the scandal. All media will never have the same political power, influence as it once had. Murdoch has lost his chance to acquire Sky, a huge massive blow.

Now tell us what you know.