Murdoch's Rapid Fall From Grace

You can only get away with invasive and criminal tactics for so long.

Over the course of six decades, Rupert Murdoch built a media company that generated great wealth – and even greater power. Whether it was identifying the extraordinary potential of soccer games or innovative drama and reality shows on television, or exploiting the endless public appetite for gossip in newspapers, he was a genius at generating profits and expanding his influence.

The 2010 Forbes Magazine Survey ranked Murdoch as the world’s 122nd richest man, and its 13th most powerful. Politicians felt they could not get elected without his approval; they changed their policy positions on wars and currencies to suit him, and rewarded him for his support, further facilitating the expansion of his empire. It’s clear that this reinforced the Murdoch sense of omnipotence and entitlement.

Whether or not the signals came from the top – and it’s hard to believe that they did not –many of those who worked for him felt that the end justified the means. They used all manner of invasive, and even criminal, tactics to feed the highly profitable tabloid appetite for scandal. The Murdoch newspapers hired private investigators whose work crossed the lines of both decency and legality; even the respected British police turned paid informant to the company’s tabloid News of the World. Celebrities, politicians, and even ordinary people caught up in extraordinary stories seemed to be terrified of the Murdoch press, which grew fat with advertising revenues.

For a long time, the public responded, indulging its voracious appetite for prurient voyeurism, buying up newspapers that splashed everything from the private lives of the royal family, the prime minister, and soccer stars, to intimate details of far more humble lives. Murdoch backed Tony Blair and Gordon Brown, and then turned on them to promote David Cameron. Once that happened, Gordon Brown’s banking files and even his sick child’s medical records became fair game for the Murdoch tabloids.

Suddenly, the whole empire is in meltdown mode – an unbelievably rapid fall from grace. The trigger was the unforgivable hacking of the voice mail of a murdered teenager, an act that cruelly tricked her family into hoping she might still be alive. Public opinion turned rapidly: While there is little sympathy for politicians, movie stars, and highly paid athletes (they’re apparently not entitled to private lives), that is a far cry from the exploitation of innocent murder victims, fallen soldiers, and families who have survived terrorist attacks.

Learn all about the News of the World scandal here.

What is eye-opening is the rapidity with which the whole dynamic changed: People who were terrified to stand up to the Murdochs suddenly found their voices. Long-time advertisers announced a boycott. Amazingly, in just a few days, all of Murdoch’s wealth and achievement came tumbling into play over a blossoming scandal that included phone hacking, police corruption, and political influence. The News Corp. stock took a bloodbath, and the company lost its opportunity to take control of BSkyB, Britain’s largest broadcasting company, as the scandal derailed the regulatory approval it needed.