News of the World to be dealt with by Rupert Murdoch Personally
News of the World is soon going to be a thing of the past at least as far as publishing of the news paper is concerned. Tomorrow will be the last ever copy of the news of the world to be distributed. The story however is far from over. Indeed revelations today that News International’s most senior and most hated man is flying directly to London today to deal with the aftermath of the Hacking Claims.
The news of the world offices are to be declared by the police investigation as a crime scene. This could be a problem for the corporate chairman. British Law allows for prosecution of directors for the actions taken by staff. If it is deemed by the police investigation that criminal charges should be brought forward against News of the World, then Rupert Murdock himself may be subject to charges.
Protecting the Brand
It has been stated that Rupert Murdock has the intention to fly to London today to take on handeling of the News of the World Scam personally. He may be hoping to avoid the personall liability much in a Gordon Brown like way. (I accept full responsibility, therefore the man that done it was fired.)
Share holders will undoubtedly want to see the matter dissapear, quietly and quickly. However with the declaration of it the offices being a crime scene instead, it seems to be more likely to stay and get even louder. As the investigations go on the police will almost certainly discover new evidence that was previously unaware. The scope of the charges will likely be extended further than they look set to go so far.
He might be planning on covering up evidence linking the activities to the parent company however that plan is likely to be problematic with the criminal investigation ongoing. Police will undoubtedly want to question him to find the extent about the activities that have been on going.
In the corporate world of investment the number of pence per share is ultimately the bottom line. Since the latest revelations from the news of the world, shares have dropped. They have droped a noticable amount – 7.5% down to 750p per share. This is almost certainly why Rupert Murdock wants to handel this personally to show investors that the News Corporation takes the allegations seriously. If he plays his cards right he might even gain a lot more on his shares at the other side.