Why is Rupert Murdoch Back in the Hot Seat?
The Murdochs are back in the hot seat to testify in front of London’s Levenson inquiry into alleged unethical behavior in the British press.
James Murdoch took the stand Tuesday with his father, Rupert Murdoch, following on Wednesday. During testimony, both Murdochs denied unethical communication with British politicians, including Prime Minister David Cameron and Culture Secretary of State Jeremy Hunt.
Emails between Hunt and News Corp. (NASDAQ:NWSA) during the company’s bid to purchase British Sky Broadcasting have led to suspicion and the resignation of advisor Adam Smith. The company dropped its bid during the hacking scandal and James Murdoch stepped down as BSkyB’s chairman earlier this month.
James Murdoch also denied any knowledge of the widespread phone hacking that occurred at News of the World under his watch during Tuesday’s testimony.
News Corp. stock was relatively unaffected by the testimony, with shares up less than 1 percent to $19.27 during midday trading Wednesday. The stock has seen a 25 percent rebound from what Jim Cramer dubbed the “pie low” of $15.40, after the elder Murdoch was hit with a shaving cream pie during testimony last July.