Rupert Murdoch falls out of love with papers

By DOMINIC JEFF
Published on 23/07/2012 00:00

Rupert Murdoch has stepped down from the boards overseeing the Sun, Times and Sunday Times, fuelling speculation he is preparing to sell his British newspaper empire.

News Corp described the move as a “corporate housecleaning exercise” linked to the announcement last month that the firm would split into two separate companies – a smaller publishing division and a much larger entertainment and TV group.

In an e-mail to employees, the company said Murdoch
remained “fully committed” to the business as chairman of what would become the largest newspaper and digital publishing group in the world.

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

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

Last month’s news that the business would be split was seen as a clear signal that the group was distancing itself from its newspaper roots.