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Business | 2007 | Jun | 25 | 9AM


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This article was reported by Jo Becker, Richard Siklos, Jane Perlez and Raymond Bonner, and written by Ms.Becker. Skip to next paragraph The Murdochracy Mixing Government and Media Times Topics: Rupert Murdoch Multimedia Graphic Murdoch’s Universe In the fall of 2003, a piece of Rupert Murdoch’s sprawling media empire was in jeopardy
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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Results of a trial run showed sharp drops in ratings for shows carried on stations owned by the News Corporation, particularly those aimed at minority viewers
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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The White House backed the industry, and in a late-night meeting just before Thanksgiving, Congressional leaders agreed to raise the limit — to 39 percent
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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One leader of the Congressional movement to limit ownership was Senator Trent Lott, Republican of Mississippi
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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But in the end, he, too, agreed to the compromise
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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It turns out he had a business connection to Mr.Murdoch.Months before, HarperCollins, Mr.
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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Still, the ownership fight showcases the confluence of business, political and media prowess that is central to the way Mr.Murdoch has built his global information conglomerate
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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But he has often set aside his conservative ideology in pursuit of his business interests
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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In recent years, he has spread campaign contributions across both sides of the political aisle and nurtured relationships with the likes of Bill and Hillary Clinton
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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More than 30 years after the Australian-born Mr.Murdoch arrived on the American newspaper scene and turned The New York Post into a racy, right-leaning tabloid, his holding company, the News Corporation, has offered $5 billion to buy a pillar of the business news establishment — Dow Jones, parent company of The Wall Street Journal
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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The sale would give Mr.Murdoch control of the pre-eminent journalistic authority on the world in which he is an active, aggressive participant
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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What worries his critics is that Mr.Murdoch will use The Journal, which has won many Pulitzer Prizes and has a sterling reputation for accuracy and fairness, as yet another tool to further his myriad financial and political agendas
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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Members of the Bancroft family, which controls Dow Jones, have sought elaborate assurances from Mr.Murdoch that he will preserve the independence of The Journal’s news coverage
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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Last night, advisers to both sides said they were close to reaching an agreement on editorial control, but it was unclear whether the Bancrofts would approve a deal
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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When he bought The Times of London in 1981 he gave similar assurances, but some former editors say he meddled with news operations anyway. Mr.Murdoch declined a request for an interview, but has recently said he would preserve The Journal’s independence
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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The American newspaper industry has never seen a publisher quite like him.Mr.Murdoch has long been a pivotal figure in England and Australia, and in the dozen years since he has moved his base of operations to this country, he has insinuated himself into the political and financial fabric of the United States
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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His businesses have thrived in a highly regulated environment in part because of his remarkable ability to mold the rules to fit his needs
Jun 25 '07 -Business- www.nytimes.com -mrmurdoch,political,business
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In 2006, The Post issued a surprising endorsement of Mrs.Clinton in her Senate re-election bid
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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On June 5 and 6 of this year, Mr.Ginsberg and Peter A.Chernin, president and chief operating officer of the News Corporation, were hosts of back-to-back fund-raisers for Mrs.Clinton’s presidential campaign, one in New York and one in Los Angeles
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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Nielsen Media Research was preparing to switch to a more sophisticated technology to calculate ratings that television stations use to set advertising rates for local programming
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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With millions of dollars at stake, Mr.Murdoch sprang into action
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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He hired the Glover Park Group, a consulting firm with deep ties to the Clinton administration, to run a grass-roots ground war
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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Charging that the system was faulty and that it undercounted minorities, the firm started an extensive advertising campaign intended to delay the rollout of the new technology and staged protests around the country that drew such unlikely allies as the Rev.Al Sharpton
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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The resulting two-year campaign was unusually brazen, even by Beltway standards
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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Protesters massed outside Nielsen offices in New York
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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Murdoch publicly denied making the threat
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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But the News Corporation turned to Republican allies to put pressure on Nielsen
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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One day after the bill was introduced, The New York Post ran an opinion article co-written by Mr.Fossella expressing outrage over plans for a museum at ground zero in Lower Manhattan
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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Ultimately, the dispute was settled quietly.Mr.Murdoch succeeded in keeping the old rating system in place for several months in the three top markets, New York, Chicago and Los Angeles
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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It was scorched earth, and it was all about money
Jun 25 '07 -Business- www.nytimes.com -nielsen,york,news
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Mr.Murdoch has said he prefers the model of committee used at The Times of London
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
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His company bought The Times in 1981 and in order to win approval for the deal Mr.Murdoch agreed to an independent oversight committee and guidelines intended to prevent him from meddling in coverage
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
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The Times is the only British newspaper with a Baghdad bureau
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
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Mr.Thomson, who is expected to play an important role at The Journal if the News Corporation buys it, said Mr.Murdoch would invest in the paper and expand overseas coverage
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
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Over the years, as Mr.Murdoch built his empire, he has lusted after The Journal
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
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She vividly recalls his fascination with the inner workings of the newspaper and said he clearly expressed his desire to own it someday
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
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Ms.Salamon initially dismissed Mr.Murdoch
Jun 25 '07 -Business- www.nytimes.com -times,mrmurdoch,journal
 
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