Murdoch Resigns From British Satellite TV Giant

James Murdoch is stepping down as chairman of British Sky Broadcasting. News Corp has long sought control of the profitable broadcaster. But the involvement of News Corp executives in the tabloid phone-hacking scandals has called into question the company's fitness to run BSkyB.

Copyright © 2012 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

STEVE INSKEEP, HOST:

After many months of bad new and devastation to its stock price, the British satellite TV giant BSkyB will try to move forward under new leadership.

NPR's Philip Reeves says this follows the resignation yesterday of its chairman, Rupert Murdoch's son, James.

PHILIP REEVES, BYLINE: James Murdoch announced his departure, acknowledging he's worried his role in Britain's phone-hacking scandal was threatening to hurt BSkyB. He doesn't want to be a lightening rod in a storm. That storm shows no sign of passing any time soon.

The scandal that began within the now-closed News of the World tabloid paper has steadily widened to other properties within his father's News Corp empire.

Barely a week passes without fresh revelations of bribery, or computer hacking or news of still more arrests by Scotland Yard, who are pursuing several major investigations. There'll be more negative headlines soon, when a parliamentary committee publishes the results of its phone-hacking inquiry.

Now it's also being reported that James and Rupert may appear before the public inquiry that's investigating British media ethics and the murky relationship between the press, police and government. That'd mean more difficult questions about their conduct.

News Corps has a controlling stake in BSkyB of nearly 40 percent. Business analysts say James Murdoch was widely seen as an effective chairman of the hugely lucrative satellite company. But the scandal that's engulfed his father's media empire - of which he was once heir apparent - refuses to go away.

James Murdoch also recently resigned as chair of News International - that's the News Corps division that runs its British newspapers - though he remains News Corps deputy chief operating officer.

Observers say the big question now is how much his retreat from Britain will insulate him from the storm.

Philip Reeves, NPR News, London.

Copyright © 2012 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: