When this broke in the 1pm BST hour today, I was stunned. I was not expecting this to have happened today. In fact, I wasn't expecting it at all. James wil stay on as a member of the board, but he's no longer Chairman.
Ofcom is investigating whether NewsCorp is a fit and proper company to hold a broadcasting licence. There are many investigations in the UK, the USA and Australia right now. But I cannot honestly see how NewsCorp can continue to own assets like British Sky Broadcasting, Foxtel and Fox Broadcasting Company.
I also think the FCC should take this as an opportunity to finally regulate the cable broadcasting market in the US.
Of course, James's resignation is another line of firewall, designed to protect Rupert Murdoch and NewsCorp's investments across the world. Just last week, Panorama on BBC1 reported how NewsCorp subsidiary company NDS had been invloved in breaking the Canal Plus encryption system that On/ITV Digital was using. Then the Australian Financial Review released emails detailing NDS's involvement in breaking other encryption systems of competitors. Currently, Cisco Systems is seeking to acquire NDS Group.
No matter how many levels of firewalls Rupert Murdoch puts in, everything goes back to him, one way or another. Murdoch is well known for handling things himself and being very hands on. Because of that reputation, he will not be able to wash his hands of all the controversies that now dog him.
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