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Could trouble lie ahead for Murdoch's U.S. properties?


Protest Credit: Timothy A. Clary

The phone-hacking scandal embroiling media mogul Rupert Murdoch and his global News Corp. has tainted his European news division, and experts said it also could impact his U.S. operation.

The Wall Street Journal/New York Post

Though these papers have not been implicated in wrong-doing, their association with News Corp. could hurt them.

“Managers who had associations with the British newspaper division are going to be affected,” said Ava Seave, who teaches at Columbia University’s business and journalism schools. “Any investigative work [these papers] have done in the past will bere-looked at, because people will be skeptical about the legality of how they got their information.”

Dow Jones CEO Les Hinton, who once ran News Corp.’s European division, resigned Friday, and some speculate that Journal editor Robert Thompson, formerly of The Times of London, could be next.

Fox Broadcasting Company

Though its focus generally has been different from that of the newspapers, it still falls under News Corp.’s control.

“Though most of the U.S. properties have separate and distinctive brands ... the more this goes on, the more they’ll be dragged into it,” said Sam Craig, director of the entertainment, media and technology program at NYU’s Stern School of Business. “At this point, things certainly look more dire than they have yet.”

20th Century Fox/HarperCollins

“They’re separate and strong brands, and there’s no direct or even indirect association with the scandal.... I don’t think that book publishing necessarily has much to do with the illegal activities of a British newspaper,” Craig said, noting, however, that “it’s a distraction.”

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