Newsmax magazine Editor in Chief Ken Chandler appeared on Larry Kudlow’s CNBC show on Tuesday and said the hacking scandal surrounding Rupert Murdoch’s News Corp. could turn out to be a boon for the media giant.
Chandler worked for Murdoch for 29 years, including six as editor of the New York Post.
Asked for his take after Murdoch and his son James appeared before members of the British parliament, Chandler said: “This was a good day for News Corp., not such a good day for Rupert Murdoch."
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“Rupert looked, as he has for the last two weeks, uncomfortable, a little out of touch, like he’s lost his touch," Chandler said.
“The good part of it I think for News Corp. is it is going to force them to confront the issue of succession.”
Discussing the future of Murdoch’s News Corp., Chandler said: “There has to be new management, an independent board of directors, rather than the rubber stamp board we have now.
“If it had been an independent board, do you think they would have allowed Rupert to pay $6 billion for The Wall Street Journal and then write the value down 50 percent a year later? Or Myspace [which News Corp. bought for $580 million in 2005 and sold in June for $35 million]. There’s been a whole trail of issues.
“I think people are realizing that News Corp. cannot be run as a family enterprise anymore.”
Chandler added that the company’s stock rose on Tuesday “because I think News Corp. will have to confront these issues, and the investors like the idea of that.”
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