After Murdoch Scandal: Has media investing changed for ever?

15th July 2011

Will investors shun media conglomerates that embrace newspapers alongside their television, film and internet interests?

Rupert Murdoch is viewed as an excellent leader, who has built a global conglomerate. But certainly to American investors, who may not be aware nor care that he was able to launch into TV partly because of revenues from the News of the World and the Sun may see ink as his weakness – i.e. why risk a business by owning tabloids? That may even apply to other tabloids worldwide such as the New York Post.

It is the television and film interests from which News Corp derives the vast majority of its income. Of course, television may not be without controversy as well. Fox News, another Murdoch brand is hugely divisive and has also in the past seen advertisements cancelled because of the excesses of some of its commentators. Maybe not all the risk rests with newspapers.

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