15 July, 2011

Murdoch & Co

Rebekah Brooks, chief Executive of News International, has resigned and the media are full of it. They remember that Ed Miliband, the darling of the story, had from the start called on her to consider her position: now, they say, Murdoch, on the ropes, has caved into public pressure and sacrificed his favourite.

So, Murdoch has dithered and then caved in to ..er.. Ed Miliband. Doesn't really sound like the same bloke. Here is my take on what went on.

Murdoch knew when he landed in Britain that he had three choices. The News of the World was neither viable nor saleable so he enacted an established plan to replace it with the Sun on Sunday. To buy some time, he closed it immediately watching how the land lay. His three choices were: tough it out, defending every accusation to the limit until everyone was bored; close down the UK newspaper operation selling the profitable papers and the flagship Times and Sunday Times; or stick with the UK and try to look cuddly.

With the Milly Dowler accusations, that they had tapped the 'phone of a murdered child, even deleting some of the evidence, and the obvious anger in parliament, toughing it out was not going to be possible. I believe he was seriously considering pulling out of newspapers in the UK when he learned of the FBI investigation. America is his heartland: he acquired American citizenship for Fox, and America is where the people and the money are. Faced with an uphill struggle there, he decided his only option in the UK was to roll over and play cuddly.

For the toughing it out or the sale, Rebekah Brooks would have been ideal. For the cuddly look, she was already contaminated material. She had to go.

And I believe Murdoch made this decision only yesterday.

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