Is This Rupert Murdoch's Waterloo? - Steve Blacker

By Legends & Leadership Archives
Cover image for  article: Is This Rupert Murdoch's Waterloo? - Steve Blacker

Disclaimer: I went through two different take-overs by Rupert Murdoch during the 1970's. One was his purchase of New York Magazine Company when I was The Publisher of The Village Voice. The second when he acquired CUE Magazine when I was its President & Publisher. In between these two events I worked for Murdoch as VP of Advertising at The New York Post.

1. What seems most puzzling is why Murdoch listened to his son James and shut down News of The World without anyone asking him to do so? Rupert's strength and staying power in the UK and elsewhere was dependent upon his ability to hurt a competitor through his vast media holdings. The New of The World, Britain's largest newspaper was a major assault weapon for Murdoch. Shutting it down without being asked to do so reduced Murdoch's influence and power in the UK dramatically. It was a first for Murdoch too. A surrender without going to battle; and going to battle is where Rupert excelled.

2. Murdoch has been an extremely successful "Media Baron" due to his uncanny ability to outmaneuver any and all competitors. If anything when attacked Murdoch would become an even tougher competitor and would never retreat. Murdoch's boldness and savvyness scared most people. Unfortunately for Rupert his successes over the years created many enemies.

3. Once Murdoch caved in and closed The News of The World quite unexpectedly the media and Rupert's former political allies attacked him relentlessly. Just as sharks go after blood in the water; Murdoch's showing human frailty made people realize that he was no longer invincible.

4. One wonders why Murdoch did not immediately summon his American PR guru Howard Rubenstein to the UK to help him formulate an effective strategy. And Roger Ailes as well who is an unmatched media strategist. Instead Murdoch seemed to hang in the wind and take advice from his son James who seemed all too happy to close down a major asset.

5. When Murdoch shut down The News of The World people wondered why? One assumption was that he and News Corporation must be guilty of something. Rupert's not immediately firing Rebekah Brooks was another huge mistake. Her lingering on just angered and embarrassed Murdoch's former political allies. Brook's final comments at a News of The World staff meeting implied there was more bad news coming.

6. Les Hinton became another sacrifice but rather than Murdoch conducting a blitzkrieg at the beginning every event seemed to make Murdoch appear more out of control of his own destiny. British political leaders once dependent upon Murdoch's support and friendship are now outdoing each other in calling for investigations. The New York Times is finally getting even as rarely a day goes by without a News Corp or Murdoch embarrassment appearing on page one.

7. When I worked at The Post Murdoch's loyal lieutenants from Australia and Great Britain referred to him as "the boss". It was a very clear way of acknowledging not just his ownership but that no major decisions got made without his approval. Whether Murdoch knew or far worse authorized the phone hackings is questionable at this point. My take is that Murdoch is far too smart to have authorized such a stupid thing. Instead, I believe his key lieutenants assumed he wouldn't mind and just never told him.

8. Perhaps Murdoch is guilty of indirectly encouraging such behavior? Unlike many media owners Murdoch did not court favor with celebrities; instead he focused his charm and media power mainly on politicians and bankers. While Murdoch was not happy to own The Village Voice - it came with New York Magazine Company - he never suppressed an article or fired an editor that I was aware of. He did use the New York Post to get Ed Koch elected Mayor but other media owners had done the same thing with other politicians.

9. Rupert Murdoch may have changed the media landscape but his success was based upon his ability to give the public what they wanted. If certain elitists claimed he lowered the bar and sensationalized things this was not a new occurrence. What was new is how successful Murdoch became from creating a new TV channel in the United States to successfully saving and repositioning The Wall Street Journal.

10. Unlike Napoleon this will not be Murdoch's Waterloo. He will have to endure endless investigations, have people question his moral character in regard to owning a TV station in the US and might even have to ask his son James to resign --- but Murdoch and News Corp will survive. A little humbler and wiser.

Steve's most recent book You Can't Fall Off The Floor - The Insiders' Guide to Re-Inventing Yourself and Your Career chronicles his 50 year career working for over 25 different companies with 189 lessons learned and insider tips from Gayle King, Cathie Black, Chuck Townsend and 28 others; Blacker is still going strong today as a partner in Frankfurt & Blacker Solutions, LLC. His web site is blacker-reinventions.com and e-mail address is blackersolutions@aol.com

Read all Steve’s MediaBizBloggers commentaries at Media Reinventions.

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