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Barry - Breaking News: Sex, Lies and the Murdoch Succession

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Barry Breaking News: Sex, Lies and the Murdoch Succession
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Murdochs empire is declining, none of his children are both able and willing to take over, and scandal wracks his lifeyet he still manages to thrive despite it all

At the age of 82, Rupert Murdoch divorced his third wife and is gearing up for the toughest challenge of his life: to hand his empire on to his children. But is this the end of the Murdoch dynasty? Lachlan doesnt want to succeed him. James is in disgrace. And Elisabeth is not a serious contender. His grip on the group has also been weakened by scandal. His British tabloids have been caught hacking phones and bribing officials on an industrial scale. At least 20 journalists will soon face trial for hacking and corruption and could be jailed. But Rupert thrives on crisis. He has recently split News Corp in two, doubled his fortune to nine billion, and is bouncing around like a man in his prime. So can he win this one last battle and keep it all in the family?

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First published in Australia in 2013 Copyright Paul Barry 2013 All rights - photo 1

First published in Australia in 2013 Copyright Paul Barry 2013 All rights - photo 2

First published in Australia in 2013

Copyright Paul Barry 2013

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher. The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10 per cent of this book, whichever is the greater, to be photocopied by any educational institution for its educational purposes provided that the educational institution (or body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act.

Allen & Unwin

83 Alexander Street
Crows Nest NSW 2065
Australia
Phone: (61 2) 8425 0100
Fax: (61 2) 9906 2218
Email: info@allenandunwin.com
Web: www.allenandunwin.com

Cataloguing-in-Publication details are available from the National Library of Australia www.trove.nla.gov.au

ISBN 978 1 74175 978 5

eISBN 978 1 74269 979 0

Typeset in 12/17pt Adobe Caslon by Midland Typesetters, Australia

CONTENTS

PROLOGUE
EVER SO HUMBLE

Id just like to say one sentence. This is the most humble day of my life.

Rupert Murdoch, 19 July 2011

Ruperts mouth is turned down at the sides and he is looking depressed. He has every right to be. He is almost totally bald, with spikes of grey hair on the back of his head, and a rash of liver spots up one side of his forehead. One observer will describe him unkindly as a walnut inside a condom.

His youngest son James has ushered him into the packed committee room in the House of Commons like the old man he is and shown him to his seat, helped by his young Chinese wife, Wendi Deng, in a pink tailored jacket, who has pulled back Ruperts chair, as if he cant find it himself.

The punters have been queuing around the block all morning to secure ringside seats and millions are watching live on TV around the world. In America, the stock market wants to know if Rupert, who is now entering his ninth decade, has still got his marbles. In his native Australia theyll be staying up past 2 a.m. to see how he goes.

Its not often you get a Murdoch grilled about his newspapers abuse of power, let alone two of them at once. In fact its absolutely unprecedented.

It has the air of an impeachment, a moment in history. And it certainly is for Rupert. Hes worked for 58 years to build up News Corp, his US$40 billion media empire, and now its all at risk. His greatest wish has been to pass it on to his children, so they can continue his work. And now thats all at risk too, with James facing imminent disgrace.

So what are his many enemies hoping for from his interrogation? For him to be humiliated, caught, cornered or brought to book? Perhaps even for him to say sorry? If so, theyre not entirely disappointed. As James launches into a long-winded answer to the first of the MPs questions, his father puts a hand on his arm to stop him. Id just like to say one sentence, he says earnestly. This is the most humble day of my life.

Is it rehearsed? Probably not: one of Ruperts great attractions is that he rarely thinks hard before opening his mouth. Is it sincere? Up to a point. But humiliated would be more accurate. In his entire business career he has never been brought so low: politicians have always come to him, and he has asked the questions.

So why is the worlds most powerful media baron grovelling to these nobodies? Why has he submitted to this public shame? The answer is simple. Hes been ordered to attend: the MPs have served him with a summons, delivered in person by the Deputy Serjeant-at-Arms to his concrete bunker in Wapping. The might of Parliament has been brought to bear.

And days before thiswhich is why MPs want to interrogate himhes been caught red-handed, up to his elbows in shame and scandal. His journalists on the News of the World have been found hacking illegally into thousands of intimate, private voicemails, of princes, politicians, soapie stars and murder victims, to steal their secrets and turn them into stories. His grubby tabloid paper has been destroying peoples lives to entertain the masses.

Even worse, some of his top lieutenants have been lying about it to Parliament and the public for the last five years, even as News has paid out millions of dollars to hacking victims to buy their silence, claiming the crimes were confined to one rogue reporter, and swearing it had never, but never, been part of the papers culture. It has been a cover-up of monstrous proportions.

And worst of all, theyve now been caught in these lies as well.

So does Ruperts new-found humility mean hell take the blame? Well, no. Even though he runs his empire like the family firm, he claims that hes been betrayed by the people closest to him, that he too is a victim.

Do you accept that ultimately youre responsible for this whole fiasco? he is asked.

No, he replies.

Youre not responsible? Who is responsible?

The people I trusted, that I trusted to run it, and then maybe the people they trusted.

But it is not just that Ruperts hired help have lied. James Murdoch, who ran the British newspapers, has joined the chorus of denial and authorised pay-offs to keep the story quiet. And even now, in the halls of Britains Parliament, hes telling an untruth, claiming he was never shown the documents that could have warned him hacking at the News of the World was happening on an industrial scale.

Rupert, too, has aggressively trumpeted his papers innocence, telling the world that all the investigations, inquiries and published evidence were just his enemies out to get him. It was the elites, the toffs, the riff-raff and the failures who resented his success, trying to bring him down. Hes at it again today, blaming jealous rivals for making this into a witch hunt. They caught us with dirty hands, he tells MPs, and they built the hysteria around it.

People are now asking whether this could be the end of the Murdoch dynasty. Some pundits are saying the old man will be gone within the year and there is now no chance of James taking the throne, or of Rupert passing the crown to his kids. Some are suggesting that James could be charged and that perhaps even Rupert will feel a hand on his collar.

But even if they escape this fate, the Murdochs face a painful future of inquiries, interrogations, revelations, arrests and charges against the people who ran their British newspapers. Then there will be high-profile trials, and the dirty laundry will be washed again. Some of the people that Rupert trusted, like his favourite, Rebekah Brooks, who is almost like his surrogate daughter, may well end up in jail. But one things for sure: the worst is yet to come.

The big question is, can the Murdoch dynasty survive? Rupert is famous for being at his best in a crisis, for rising to a challenge, for really coming alive. But has the old man still got the energy to fight the fight, or will this catastrophe mark the end of his power in Britain and perhaps of his own brilliant career?

PART I
THE RISE OF THESUN KING


THE PAPER PRINCE

She was an okay mother.

Rupert Murdoch

Rupert Murdoch is half puritan, half gambler, and thats the way he has always behaved. His father was from a long line of Presbyterian preachers and moralists; his mother the daughter of a handsome rake who lost a fortune to the bookies.

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