WSJ says: Scandal threatens James Murdoch's status as father's successor
Once he seemed certain to step in to the shoes of his 80-year-old father Rupert at News Corp - but now, according to the company's flagship US newspaper the Wall Street Journal today, James Murdoch "faces a series of behind-the-scenes battles as he seeks to stabilise his status."
The phone-hacking scandal at the News of the World, says the Journal, "has thrown into question the company's future, as well as Mr Murdoch's status as the potential successor to his 80-year-old father."
The accusation last week by two former NoW executives that James misled Parliament about when he learned that illegal reporting practices at the NoW were more widespread was "especially troublesome" said the WSJ. Last Thursday, the paper's last editor, Colin Myler, and its long-serving company lawyer, Tom Crone, said they told James Murdoch in early 2008 of an email suggesting phone hacking went beyond a single journalist, contradicting the company line, put forward by Mr Murdoch as recently as last week's Parliamentary hearing. On Thursday, a board meeting of satellite broadcaster BSkyB is expected to provide the strongest signal yet of whether the BSkyB board will continue to support James Murdoch as the company's chairman. Even with bid to buy the rest of BSkyB dead, Ofcom is still studying whether, after the hacking revelations, News Corp remains "fit and proper" to hold a broadcasting licence for BSkyB. The article by three named Journal writers commented : "It's a far cry from the sigh of relief some at News Corp breathed after last week's parliamentary hearing, when the initial feeling was that nothing had transpired to make matters worse for either Murdoch." The News Corp board is expected to meet in person in early August and isn't expected to make any major decisions related to the scandal at least until then. But insiders said the situation could change depending on events. At BSkyB, in James's favour is that he is is credited by a number of investors for much of the success the company has enjoyed since he became CEO there. This week, News Corp is also faces increased scrutiny from the U.S. Department of Justice, which may issue subpoenas as part of preliminary investigations relating to alleged foreign bribery and alleged hacking of voicemail of September 11 victims, according to a government official. According the WSJ, a person close to News Corp said last week that the preparation of subpoenas is "a fishing expedition with no evidence to support it". A News Corp spokeswoman has said that the company has "not seen any evidence to suggest there was any hacking of 9/11 victim's phones, nor has anybody corroborated what are clearly very serious allegations".