Hacking Scandal Starts to Hem in Rupert Murdoch’s Empire
The hacking scandal has delivered a blow to News Corporation’s push into the potentially lucrative education sector, a project prized by Mr. Murdoch. In November 2010, News Corporation paid $360 million for a 90 percent stake in Wireless Generation, an education technology company based in Brooklyn that specializes in interactive learning tools.
In August, Wireless Generation lost its $27 million no-bid contract to develop educational software for New York schools. Thomas P. DiNapoli, the New York State comptroller, said the state rejected the contract ‘in light of the significant ongoing investigations and continuing revelations with respect to News Corporation.’
In Turkey, News Corporation, which already operates several Turkish television stations, is one of three bidders for the country’s second-largest media group, Sabah-ATV, which is valued at $700 million to $1 billion. A deal would add to its portfolio of international pay TV stations, which includes Sky Deutschland in Germany and Sky Italia in Italy.
But the bid could face regulatory opposition in Turkey as a result of the scandal. ‘They’re persona non grata right now as a bidder on assets,’ said a person familiar with the company’s plans who did not want to publicly criticize News Corporation.
Protesters dressed as James and Rupert Murdoch outside a London court last week, where the younger Murdoch was testifying.
See what happens when you get so powerful and arrogant that you think you can get away with anything?
Frank says: