Rupert Murdoch quits boards of British papers

Monday, 23 July 2012 00:11 - - {{hitsCtrl.values.hits}}

Reuters: News Corp’s (NWSA.O) Rupert Murdoch has stepped down from a string of boards overseeing the Sun, Times and Sunday Times newspapers in Britain, the company said in an internal memo on Saturday.

The company described the news as a “corporate housecleaning exercise” linked to the announcement in June that News Corp would split into two separate companies: a smaller publishing division and a much larger entertainment and TV group.

But the news is also likely to reignite speculation that News Corp could be preparing to sell the titles, following a phone hacking scandal at the now defunct mass-circulation News of the World that has damaged Murdoch’s reputation in Britain.

The revelations of sustained criminality prompted an influential parliamentary committee in May to describe Murdoch as unfit to run a major company.

James Murdoch, who was chairman of the British newspaper arm News International when the revelations emerged, has already quit the British newspapers and moved to the United States.

“Last week, Murdoch stepped down from a number of boards, many of them small subsidiary boards, both in the UK and US. This is nothing more than a corporate housecleaning exercise prior to the company split,” a spokeswoman said.

As part of the plan, the $53 billion media conglomerate will be split into two publicly traded companies, with the Murdoch family retaining control of both.