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Old 02-11-11, 07:23 PM
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Default Murdochs 'discussed News Corp succession with family therapist'

Well this is... extremely weird.

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The adult Murdoch siblings saw a family therapist last year to discuss succession at the media empire built by their father, Rupert Murdoch, an article to be published in the forthcoming issue of Vanity Fair is to claim.

The report, by former Wall Street Journal journalist Sarah Ellison, will also reveal that Rupert considered stepping aside as chief executive of News Corp last year to allow his son James to be groomed for the job.

According to the magazine, Rupert wanted the company's chief operating officer Chase Carey to step in to the chief executive role on the understanding he would then prepare James, who is the youngest of Murdoch's three children from his second marriage, to take the top job at the media conglomerate. Rupert would have stayed on as chairman.

Ellison writes that to aid the succession process: "the [Murdoch] siblings had been in family counselling with a psychologist over the issue of succession" since before last February.

As well as James, the others involved in the therapy were Lachlan, Rupert's eldest son, who sits on the News Corp board, and Elisabeth, whose production company, Shine, was recently acquired by News Corp. Rupert's oldest child, Prudence, the product of his first marriage, was also involved.

The article reveals the tensions that the phone-hacking scandal at the News of the World caused within the Murdoch empire. "Elisabeth blamed her brother for allowing the phone-hacking scandal to spiral out of control," Vanity Fair reports. "She approached her father and urged him to take control of the situation."

According to the account, Elisabeth told her father that James should take a leave of absence from the company, while arguing that Rebekah Brooks, who was chief executive of News of the World publisher News International, should resign along with Les Hinton, the loyal Murdoch deputy who had run News International previously.

Rupert considered the idea, the article claims, and telephoned James. "'Maybe you should go too', he said. But after a sleepless night he changed his mind."

The article also claims Elisabeth Murdoch did not take up her position on the News Corp board following the Shine acquisition earlier this year because her lawyers advised her to stay off the board to avoid becoming embroiled in the phone-hacking affair.


It had been thought she had not taken up the position because she believed it was a bad idea for another Murdoch to join the board when the company was in crisis.


Rupert Murdoch also voiced misgivings about James, according to Ellison. "Rupert felt that James, while a talented executive, needed to learn to exercise better judgement and exhibit some humility."


That view was shared by his siblings, she adds, who "agreed that James was the best-suited to be heir apparent, but ... also agreed he had to stop being so aggressive and alienating in his public postures".


James Murdoch delivered a lecture at the MediaGuardian Edinburgh International Television festival in 2009, using it to attack the BBC.


News Corp declined to comment
Murdochs 'discussed News Corp succession with family therapist' | Media | guardian.co.uk
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Old 04-11-11, 02:32 PM
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The most ominous sign yet for the future of the Murdoch empire is the claim, made in the forthcoming issue of the magazine Vanity Fair, that for nearly a year Rupert's children have been "in family counselling with a psychologist over the issue of succession". Buccaneers don't go to counselling. In Shakespeare's plays, sibling rivals for power don't seek psychological help; they kill each other. That is how they prove their ruthlessness. Rupert Murdoch would never have become the world's most powerful media tycoon if he had discussed every decision he made with a shrink. Yet Lachlan, Prudence, James and Elisabeth are reported to have turned to a psychologist to advise them what to do when the old man finally decides to pack it in.

Rupert Murdoch, like a mafia godfather, has always made clear that he wants one of his children to succeed him as chief executive of News Corporation, and his clear favourite before the phone-hacking scandal broke was James, whom he had already promoted to be head of NewsCorp's British subsidiary, News International. But since then, according to Vanity Fair, their relations have become strained, and Elisabeth has been busy stirring it by demanding the heads not only (successfully) of top executives Rebekah Brooks and Les Hinton but also (unsuccessfully) of her brother James, who faces further interrogation by MPs next week amid new evidence that he may have known more about the News of the World's phone-hacking practices than he has so far admitted.

This sounds ruthless of Elisabeth, but perhaps not ruthless enough, because she seems to care rather too much about family harmony. According to the magazine, the counselling started at the beginning of the year when Rupert was considering giving up his CEO title and wanted James to be groomed for the job. "Lachlan, Prudence and Elisabeth had discussed the move extensively with James," it said. "They told James that if they worked together as siblings they could help him and their father have a better relationship, and that together the kids could hold Rupert to account to be a mentor to James and not undermine him."

This is all a bit muddling. I haven't seen the full article, but I'm not clear from the summaries how Elisabeth's compassionate attitude towards James is compatible with her reported demand of her father that he ask him to relinquish, at least temporarily, his job at News International "for allowing the phone-hacking crisis to spiral out of control". But the general picture is clear enough. It is one of a doddering old man ready to give up power, but unable to do so because of divisions and animosities within the family.

The article talks not only of tension between him and James, but also of distrust between him and Elisabeth's husband, the public relations man Matthew Freud. It says James's siblings agree he is "the best-suited to be the heir apparent", but somewhat half-heartedly so, because they find him too "aggressive and alienating in his public postures". At the same time, James's position seems to be increasingly precarious, and his chances of succeeding his father ever smaller. These are not problems with which a psychologist would be much help.
So Rupert Murdoch's children are in counselling? Surely no psychologist can help them | Alexander Chancellor | Comment is free | The Guardian

The more I look at this, the more brilliantly devious it appears. There's no single facet that doesn't sparkle - no wonder the chap's a gazillionnaire.

Clearly the basic problem is how to prevent the business from tearing itself apart after he pops off, in a situation where none of his kids actually deserves to be designated as the dauphin. A solution that they've worked out themselves would be more likely to stand up than just letting things happen naturally, and to stop it degenerating into a bunfight you need an outside mediator, but given what's at stake it has to be one that merely stops them squabbling and doesn't try to intervene in the decision-making process himself. For that a doctor/psychiatrist is perfect, since he's got all his medical ethics preventing him from intervening, which wouldn't be the case had they brought in a professional mediator (something which would also have sent the share price crashing because it looks like a business crisis).

What really surprised me when the story broke was the apathetic way in which the kids were just accepting the set up. Poor old Rupe, they're not a very prepossessing bunch, are they? Couldn't Wendi take over?
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Old 04-11-11, 02:46 PM
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Clearly, Wendi is the most qualified of the bunch - A top 1% student at CSU and she was willing to sleep her way to the top i.e. she has the required moral outlook to succeed in the business media world.
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Old 05-11-11, 11:55 AM
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The Murdoch family: required reading | Media | guardian.co.uk

Quote:
As News Corporation battles to save its reputation in the wake of the hacking scandal, two big glossy magazine profiles have landed with something of a thud.

The pieces – in New York magazine and Vanity Fair – are of the kind favoured by editors (long, elegantly written and big on anecdote) but probably, shall we say, less well-appreciated by readers.

Anyway, both are worth the effort, particularly for avid Murdoch-watchers.

For a start, you can play a fun game of guess-the-source. The New York magazine profile of Elisabeth contains absolutely no on-the-record quotes except a few lines from former Sunday Times editor Andrew Neil and a mention of former Murdoch-watcher Michael Wolff – and let's face it, the junior reporter on the Kalamazoo Gazette should be able to get an on-the-record quote from those two.

And given that it is so sympathetic towards Elisabeth. we must assume from this that it was compiled with co-operation from "sources close to her". (Clue: her husband is a big-shot PR man in London, Matthew Freud.)

Unless I'm very much mistaken, the Vanity Fair piece about the Murdoch succession battle (which also largely focuses on Elisabeth) contains not a single on-the-record quote except for items gleaned from previous interviews.

Nevertheless, both are excellent reads from top writers. And where would any of us be without anonymous sources?

So what do we learn from both? Here are the top three takeaways from each.

New York magazine profile of Elisabeth Murdoch

1. Bryan Ferry serenaded her at her 21st birthday party at the Tavern on the Green on the Upper West Side in New York. "That's when people were like, 'Oh, shit, this isn't your average Upper East Side money family," a college friend tells the writer, Gabriel Sherman.

2. Her husband, London PR man Matthew Freud, is at the centre of a grand plan to place her at the heart of the battle to succeed her father, Rupert, as head of News Corp. ""Freud's whole strategy is keep her out of it long enough until James wrecks himself," a source close to the company says. "It's fairly transparent."

3. The Daily Telegraph reporter who wrote the story quoting Elisabeth slamming James as having "fucked the company" suspected that Matthew Freud was the source. "On the morning of July 15, John Bingham, a reporter for the Telegraph, got a tip from a high-ranking editor at the paper that Liz was overheard at a party saying, 'Rebekah fucked the company.' The editor told Bingham to write up the account but refused to tell Bingham the identity of the source, leaving Bingham to wonder if Freud was spreading the gossip. "

Vanity Fair feature on the Murdoch succession
1. Lachlan Murdoch encouraged his father to indulge in alternative therapies in preparation for this summer's parliamentary hearing into the hacking scandal. "'He made sure Rupert was rested and had meals and acupuncture, and was very supportive,' a family adviser told me," Sarah Ellison writes.

2. Elisabeth Murdoch gave her father no warning of her resignation from News Corp in 2000. Knowing there was no love between her father and her husband, in a subsequent phone call, "she dropped the real bombshell: 'Dad, you are so pissed at me now you might as well know I'm pregnant with Matthew's child'."

3. James Murdoch's wife Kathryn Hufschmid, does not rate Elisabeth's husband, Matthew Freud. '"She detests Matthew with a passion," one of them told me.'
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