News Corp Woes Could Mean Trouble For This Broadcaster
British satellite broadcaster British Sky Broadcasting Group plc is trying its best to distance itself from embroiled stake holder News Corp. (NASDAQ:NWS) after a parliamentary panel concluded that CEO Rupert Murdoch was “unfit” to run the company.
Last year, News Corp. bowed out of a $12 billion attempt to gain control of BSkyB after the company came under fire for hacking voice mailboxes to gather information for stories. In the panel’s final report, regulators concluded that three senior News International executives misled the committee during testimony. News International is the British newspaper unit of News Corp.
BSkyB is now trying to convince regulators that it is “fit and proper” to hold a broadcasting license. “I would emphasize that it’s important to remember that Sky and News Corporation are separate companies” said BSkyB Chief Executive Jeremy Darroch.
The broadcasting company revealed 2 instances of e-mail hacking in 2008 and 2009 but maintain they occurred for journalistic reasons and in the interest of the public good. Rupert’s son James Murdoch stepped down as chairman of BSkyB’s board days before the hacking revelation.
On Wednesday, BSkyB reported that its net profits for the 9-month period ended March 31, 2012 were up 19 percent to $1.1 billion, compared with the same period last year.