Rupert Murdoch in the media world – A ruthless dictator or a tactical and successful mastermind?

His name has always been hard to avoid being engaged, involved or interested with or in the media industry. He and his News Corporation have always featured regularly in news stories and discussions with their spreading influence, questionable decisions and debatable intentions, lately more than ever with the phone hacking scandal. But who is behind that name and the media empire it rules?

Sir Keith Arthur Murdoch (August 12, 1886 – October 4, 1952) – Father, predecessor and initiator of the Murdoch Empire

For decades the Murdoch Empire has grown and evolved to what it is today, the News Corporation, but it all originated in Melbourne, Australia, where Rupert’s ambitious father Keith started his journalistic career.
Back in the early 20th century, Sir Keith established himself as Australia’s most influential newspaper executive and media owner. He directed The Herald and Weekly Times Ltd based in Melbourne, working as a journalist and advisor to the Prime Minister of Australia Billy Hughes during World War I. His notorious letter to Hughes’ predecessor Andrew Fisher is seen by many as a heroic act that saved the Australian Imperial Force (AIF) from a pointless blood bath. But his actions are also criticised by some seeing them based on insufficient evidence and sketchy arguments against General Sir Ian Hamilton, who consequently got deposed. Around the same time, Billy Hughes took over as Prime Minister, whom Keith shared a good relationship and contact with fuelling speculations about Keith’s intentions. The same “Fisher letter” critics also accuse Sir Keith of over-glorifying the AIF and their actions under Hughes’ reign whilst many lost their lives in hopeless battles and of anti-semitism against Jewish AIF leader John Monash, trying to bribe him to surrender his post. They see his actions directed purely by his own profit and advantages he gains from them. But many, especially in Australia, remember him as Australia’s saviour and idol to journalists.

Keith Rupert Murdoch (born in Melbourne, Victoria, Australia, 11 March 1931) – Son and disciple, very much following in his father’s footsteps

When his father died October 1952, Rupert just began his final academic year at Oxford. He studied Politics, Philosophy and Economics (PPE) and was described by fellows as the “outsider” with a rebel heart. After long discussions and arguments lasting through to 1953, he inherited his father’s assets, including the Adelaide News, and fused them together under “News Limited”. With News Limited Rupert spread his wings as a businessman and established himself as one of the most dynamic media proprietors. Throughout the 60s and 70s he established The Australian, Australia’s first national daily newspaper, and acquired a list of daily and suburban newspapers including The Daily Mirror and The Daily Telegraph. This, with his father’s The Herald and Weekly Times Ltd, included him on to the top-three list of newspaper proprietors in Australia (with Fairfax Newspapers, running the Sydney Morning Herald, and the Consolidated Press Group, owned by Sir Frank Packer, published The Daily Telegraph before Rupert acquired it in 1972).
As a publisher, Rupert in the early stages of his career, got renowned for the News campaign against the murder conviction of Max Stuart, a young Aborigine accused of a brutal rape and murder without having a solid case or any evidence. Rupert took most of the credit for the campaign although Rohan Rivett, Rupert’s close friend from his father’s side and editor, was known as the real hero as he was the one in close contact to the Stuart family and who dropped the “bombshell” of Max’s alibi. The court and its judge were scrutinised by the News Corp for their mishandling of the case. They, News Ltd and Rivett, later had to face nine counts of defamation, causing anticlimax and leading to the sacking of Rivett (what many criticised Rupert for again). Eventually, all charges were dropped, but by then Rupert had already changed ship, geographically and editorially.

The British Empire and beyond

From the mid-60s and throughout the 70s and 80s, Rupert reoriented his focus from Australia to the UK and US. He acquired a list of top selling newspapers. In the UK, The Sun lead the list and is still the most selling newspaper worldwide, ahead of News of the World. In the US Rupert acquired San Antonio Express-News, founded Star and purchased the New York Post, also one of the top-selling newspapers worldwide. With his growing influence and confidence, Rupert’s group of critics grew, too.
In the 1982 Falkland War under Margaret Thatcher and the Conservatives, which Rupert was a known ally to, the sinking of the Argentine light cruiser Belgrano where 323 crew members lost their lives and The Sun’s headline “GOTCHA – Our lads sink gunboat and hole cruiser” was seen as a controversy which for many Rupert still has to live down today.
When Rupert took over The Times, similar controversy emerged amongst journalists, as many feared there would be no independent newspaper, as Rupert was known for his self-benefiting political tendencies and intentions. This led to the founding of The Independent in 1986.
In April 1989 The Sun caused furore again with its accusations made against the Liverpool fans in the aftermath of the Hillsborough disaster, where 96 fans lost their lives following a human crush in the FA Cup semi-final between Liverpool and Nottignham Forrest. Under the headline “The Truth” and sub-headlines “Some fans picked pockets of victims”, “Some fans urinated on the brave cops” and “Some fans beat up PC giving kiss of life”, then editor Kelvin MacKenzie let the story run claiming that “drunken Liverpool fans viciously attacked rescue workers as they tried to revive victims” and “police officers, firemen and ambulance crew were punched, kicked and urinated upon”. Following this report, the newspaper was boycotted by most newsagents in Liverpool and thousands, if not millions, of fans are still campaigning today for “Justice for the 96″, having not forgiven The Sun for their misrepresentation and the  relatively low sales figures in the region are still reflecting that.
By the 90s, Rupert’s News Corp – new name to News Limited – had run themselves into debts. Main part of those debts, was his UK-based satellite network Sky Television which was saved through merging with their main rival satellite operator British Satellite Broadcasting, now known as BSkyB which has dominated the UK’s pay-TV market ever since, especially in Rupert’s favourite area: Sport. Over £300 million were invested alone for the FA Premier League rights to show live games, beating the BBC and ITV and thereby manifesting Sky Sports as main source of capital and success for BSkyB and Rupert.
With the turn of the new millennium, BSkyB made the headlines having failed to reach agreements with Richard Branson’s Virgin Group regarding their channel agreement, the latter accusing the former of over-charging, money-making and “using their dominance to stifle their competition” and filing a legal case in the High Court against BSkyB under the UK Competition Act 1998 and Article 82 of the EC Treaty. Many regarded both parties as unprofessional and childish and the National Consumer Council considered whether or not they are going to raise a super-complaint against both of them.
Past those ups and downs, Rupert redeveloped, advanced and invested a lot into many parts of the media industry, especially the newspaper and television industry through technical advances like digitalisation and broadband and with success (Fox News, CNN’s biggest and only 24h–news–station competitor as one of the most successful examples).

News Corp today and its future

Three of Rupert’s six kids from four marriages have been more than involved with the News Corp hoping to inherit their father’s fortune of his stake in the News Corporation estimated to be worth around $7.6 billion in the latest figures of 2011, with last year’s rvenue topping over four times that with $32.778 billion .
Rupert’s eldest son Lachlan (born in London, Sept 8 1971) was the deputy chief operating officer at the News Corporation and the publisher of the New York Post before surprisingly resigning from his executive posts in July 2005. Elisabeth Murdoch (born in Sydney, Aug 22 1968) had made purchases in the American television industry with loans from her father but quickly grew independent from her family, making a career as a television and film producer in London. The main candidate to be Rupert’s successor is James Murdoch (born in Wimbledon, Dec 13 1972) who took over from Lachlan as chief executive of BSkyB since November 2003 and is the only Murdoch offspring still directly involved in the News Corp business. The hacking scandal and its aftermath over the next year or so will show whether James can weather and cope with the storms of media ownership and leadership as his father and grandfather have over the past century; popular or not, under the table or not, above the law or not, the success of the Murdochs has grown, shown and shone through the decades with News International, fact, like it or not.
Tensions have arisen between Rupert and his oldest children in the past over who will receive what and how much control and stake of the News Corp and Murdoch media empire. Over the years some terms have been drawn out but that without a doubt does not mean the end of discussions and tensions, which is worrying regarding Rupert’s age (80). So, it is still to be settled and seen who will be the successor to Rupert’s throne and after the most recent crises, developments and call for heads, the question is, who will want to take the responsibility on top of all the values and riches.

References: – The Murdoch Archipelago – Bruce Page & his further references.
– www.wikipedia.info – under Keith Arthur Murdoch, Keith Rupert Murdoch, British Sky Broadcasting, Falkland War, Hillsborough disaster and further references.

Originally written 07/05/2007, last edited and updated 19/07/2011.