BBSIMS-B B S Institute of Management Studies

BBSIMS-B B S Institute of Management Studies


Murdoch facing battle with staff in Sun showdown

By Brijesh Singh
Murdoch facing battle with staff in Sun showdown

 "No one can imagine quite the pressure he was under in July," said one person familiar with the situation.
"The pace of it was incredible, it was very emotional and traumatic. This is very different."
Unlike in July, readers and, most importantly, advertisers have shown little reaction to news over the last two weeks that nine current and former senior staff have been arrested and questioned over payments made to police and other officials.
Politicians, who spectacularly turned on Murdoch following the admission that his journalists hacked into the phones of murder victims and Britain's war dead, have also held back in the knowledge that calling for the closure of the biggest selling newspaper would be a dangerous move to make.
But despite the different scenario, Murdoch is still under huge pressure. The FBI and other American government agencies have stepped up their hunt for signs of illegality at a U.S.-based company. A case brought under the Foreign Corrupt Practices Act could result in fines of millions of dollars.
He is also under fire from within, having opened an internal investigation that resulted in the latest arrests and led to the talk among frightened and angry staff of a witch-hunt.
And he has few options as bankers say no company would want to buy the Sun or his Times newspapers until they have been thoroughly investigated. For so long one of the most powerful men in Britain, Murdoch is now effectively powerless to act.

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