SMRs and AMRs

Saturday, July 16, 2011

2 Top Deputies Resign as Crisis Isolates Murdoch

By JOHN F. BURNS and JEREMY W. PETERS
NYT

LONDON — The crisis rattling Rupert Murdoch’s global media empire claimed the two highest-level executives yet on Friday after days of mounting pressure from politicians and investors on two continents.

Les Hinton, the publisher of The Wall Street Journal since 2007, who oversaw Mr. Murdoch’s British newspaper subsidiary when voice mail hacking by journalists was rampant, and Rebekah Brooks, who has run the British papers since 2009 and become the target of unrelenting public outrage, both resigned in the latest blow to the News Corporation and its besieged chairman.

At first incensed by the assault on his company’s reputation, Mr. Murdoch insisted as late as Thursday that the executives had performed “excellently” in dealing with the crisis since it erupted two weeks ago. He was said to be loath to lose either of them, and became convinced that they had to leave only over the last several days, as executives and outside advisers flew in to help manage the crisis from the company’s gleaming granite and glass offices in the Wapping district of east London.

In arriving at the final decision, Mr. Murdoch was joined by his two sons, James and Lachlan, and Joel I. Klein, a senior News Corporation executive and former New York City Schools chancellor.

(More here.)

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