Phone-Hacking Scandal Causes News Corp. Power Shift

Monday, 18 Jul 2011 03:49 PM

By James Hirsen

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
The Hollywood business community can’t help but be engrossed in the developments of the News Corp. News of the World scandal.

The vast mass media empire of Rupert Murdoch includes some of the most powerful companies in the entertainment industry. Movie production and distribution giants Fox Filmed Entertainment and Twentieth Century Fox Film and the TV production corporation 20th Century Fox Television are a significant part of News Corp.’s entertainment media muscle.

Throw into the mix the Fox Broadcasting Company, the Fox Television Stations group, and the assorted attendant cable operations and the result is a conglomerate that the major Hollywood players are obliged to watch closely.

With potential and ongoing investigations here and abroad, legal entanglements hovering in criminal and civil courts, and resignations of high-ranking executives being submitted, it is clear that News Corp. will not be the same after the dust of the phone-hacking scandal settles.

However, one particular individual, a key executive in the company, may ultimately emerge as one of the most powerful people in the media.

Chase Carey has been an employee of News Corp since 1988. He has held the position of COO of Fox, Inc., and CEO of Fox Broadcasting. He also assisted in the launch of Fox Sports and Fox News. Currently, he is deputy chairman, president and COO of News Corp.

Carey took over the posts after the Hollywood insider Peter Chernin exited in 2009.

Until the scandal broke, Rupert’s youngest son, James, was widely viewed as the heir apparent to Murdoch’s media throne. But now with James Murdoch being targeted by the U.K. investigations, Carey seems to be the emergent No. 2 guy, right behind 80-year-old Rupert.

Reports indicated that Carey was the executive who along with Murdoch made the decisions to close down News of the World and abandon the BSkyB bid.

Wall Street sources reported that Carey initiated the recent sale of MySpace and the buyback of News Corp stock.

Carey is purportedly an advocate of splitting up the holdings of News Corp, with the newspapers in one autonomous entity and the film, broadcast, and cable companies in another.

Unlike his predecessor and most Hollywood power players, Carey is not into glam or the chic nightlife scene.

The Los Angeles Times seemed to express a sort of Left Coast disappointment that this potential power player possessed some conventional traits and downhome desires.

“Carey’s idea of the perfect night is a six-pack and a Yankees game,” the newspaper said. “Unlike Chernin, who enjoyed the glitz of the entertainment industry, Carey ducks the limelight and seldom pops up on the fundraiser and award-show circuit.”

Wall Street, on the other hand, apparently likes what it sees in Carey and finds comfort in his business focus and negotiation track record.

James Hirsen, J.D., M.A., in media psychology, is a New York Times best-selling author, media analyst, and law professor. He is admitted to practice in the U.S. Supreme Court. Hirsen is the co-founder and chief legal counsel for Visit Newsmax TV Hollywood:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

'Exodus' Star Christian Bale Calls Moses 'Schizophrenic'

Monday, 27 Oct 2014 09:34 AM

‘Exodus’ Film Star Christian Bale Brands Moses as ‘Schizophrenic’ and ‘Barbaric’. . . .

Ebola Gets Hollywood Treatment

Monday, 20 Oct 2014 10:23 AM

As anxiety over Ebola intensifies, some big names in Hollywood are looking to profit from the public angst. . . .

Apocalyptic Themes in Films Reflect Tumultuous Times

Monday, 13 Oct 2014 10:05 AM

The end of the world is a theme that has been finding its way into numerous modes of entertainment and a wide variety of . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved