By voluntarily withdrawing the Sky acquisition bid and having James step down as chairman, Murdoch told us what will happen with the Ofcom decision. He will likely lose the remaining 39% of Sky.
Rupert's last stand
Losing $70 billion in anticipated revenues with profits anticipated topping $11 billion is exactly the type of evidence the United States based shareholder law suit needs to oust Murdoch from the chairman position and effective control of News Corp.
The shareholder claims are strengthened substantially by events surrounding Sky. The full weight of $11 billion in profits, they will argue, proves that Murdoch runs the corporation as a personal fiefdom for his own enrichment and that of his family and, furthermore, that Murdoch's nepotism, questionable legal practices, and political bullying seriously impact company revenues, profits, and as a result, shareholder value.
The shareholder insurgency now has material proof. Lost profit opportunities over five years from failing to acquire the remaining 61% of Sky could be as high as $7 billion. This quantifiable financial damage is necessary to bolster the shareholder case. It is certainly sufficient to prove the key assertion beyond any doubt -- Murdoch is a disastrous manager who loses money and opportunities due to his poor management.
If British regulators force Murdoch to sell off the remaining 39% of Sky, News Corp will take a major revenue and profit hit. The loss of several billion in profits in just the next five years would provide strong support for the claim that News Corp's alleged illegal, demonstrably quasi legal, unethical, and, vulgar behavior is directly responsible for huge financial losses and the diminished shareholder value.
How much more do investment fund managers and the workers who contributed to those funds have to tolerate from Rupert Murdoch? Workers take the losses while Murdoch, his family, and inner circle get richer.
END
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