The Man Who Owns the News (60 page)

Murdoch believes Burden has a loophole in his contract with Felker:
Murdoch interview, October 9, 2007.

Village Voice
editors sue Clay Felker:
Ed Fancher, Norman Mailer, and David Wolf received $488,000 from Clay Felker in a settlement after suing on the basis that Carter Burden had to offer his 80 percent share to them before he sold to Felker in 1974 for $2.5 million. “Paper Route: Buying and Selling and Buying the
Voice,
”
Village Voice,
October 18, 2005.

Letter to board by staff:
Deirdre Carmody, “Murdoch Seen Closer to Completing Acquisition of
New York
Magazine,”
New York Times,
January 4, 1977.

Luck:
Murdoch interviews, October 9 and 10, 2007; September 22, 2007.

$2 million check:
Murdoch interview, October 9, 2007.

Gail Sheehy article:
Gail Sheehy, “A Fistful of Dollars,”
Rolling Stone,
July 14, 1977.

CHAPTER
7

The Leak:

From: Faber, David (NBC Universal, CNBC)
Sent: Tuesday, May 01, 2007 10:46 AM
To: Ginsberg, Gary
Subject:
I need to speak with you.
I know.
From: Ginsberg, Gary
Sent: Tuesday, May 01, 2007 10:59 AM
To: Faber, David (NBC Universal, CNBC)
Subject: Re:
You know what?
Sent using BlackBerry
From: Faber, David (NBC Universal, CNBC)
Sent: Tuesday, May 01, 2007 11:00 AM
To: Ginsberg, Gary
Subject: RE:
you know what I know and I’m about to report it
WSJ

Gary Ginsberg’s role at News Corp.:
Gary Ginsberg conversations with author, June 2007, and interviews with Murdoch family members. “Gary’s great. I see him a lot. I love Gary, Gary Ginsberg. He’s so easygoing, bam, bam, bam…But he’s like, he can make you talk. And he’s fun. He can be friendly to anyone, you can take him anywhere and he will talk to your friend. That’s funny.” Wendi Murdoch, May 19, 2008.

Elefante’s delay in telling the family about the offer:
Interviews with Bancroft family members, their representatives, and Dow Jones executives.

April 24 meeting:
Interviews with Michael Elefante, January 25, 2008, and Bancroft family members and advisors.

Roger Altman pushed out:
Rob Kindler interview, March 7, 2008.

Marty Lipton and Merrill Lynch advising the family on how to keep control:
Elefante interview, January 25, 2008.

Jimmy Lee is everybody’s favorite as the leaker:
Author asked every interview subject involved in the deal who they believed leaked the information. Jimmy Lee was the response 90 percent of the time. Jimmy Lee said, “I don’t know. I honestly don’t. I just don’t know. I’m not, my style’s not leaking like that. There are guys who do what I do who do that. I’m one of these sort of straitlaced kind of guys. You knew it was going to get out.” October 15, 2007.

“…not the biggest deal, but a jaw-dropping one”:
David Faber interview, September 2007.

Murdoch writes to Steiger:
Paul Steiger interview, September 10, 2007.

“
Stories need to be shorter…”
These were recommendations Barney Kilgore made in 1958 for how to remake the
New York Herald Tribune:
As cited in Tofel,
Restless Genius
.

“
To the People who edit the…”:
Deirdre Carmody, “Bullish
Wall Street Journal
Is Largest Daily in US,”
New York Times,
January 13, 1980.

Description of the
Wall Street Journal
in 1970s and 1980s:
Norm Pearlstine interview, September 12, 2006.

Advertising in 1980s:
Newspaper Association of America.

Murdoch on the queen:
“Someone had asked, some courtier, if the queen—the queen’s heard that Mr. Murdoch liked the film or something, and if the queen was to ask him for a cup of tea, would he accept? It shows you how they’ve come down. They would have thought that their invitation to tea was absolute royal command. Death sentence if you say no to their rotten cucumber sandwiches…Of course I’d go. She’s a nice old lady.” November 5, 2007.

The
Sun
’s cash flow:
Shawcross,
Rupert Murdoch,
225.

Diana:
The day Princess Diana died, Murdoch met a News Corp. executive at the bar at the Dorchester and was obviously shaken by what the death would mean to Fleet Street. Murdoch proceeded to get “shitfaced” on a bottle of French chardonnay, passed out, and had to be carried out to Harry’s Bar around the corner, where he was due to meet a group of bankers. Former News Corp. executive interview, February 27, 2008.

Enemas:
Gary Ginsberg points out that he has taken numerous flights with Murdoch and never once witnessed this.

Groping toward a style:
David McClintick, “Publisher Paradox: Reserved, Soft Spoken, Murdoch Is Antithesis of the Papers He Owns,”
Wall Street Journal,
January 7, 1977.

Steve Ross’ “racketeering” and mob connections:
In what was known as the Westchester Premier Theatre Affair, two Warner executives were indicted for racketeering in connecting to a mobbed-up theater in Tarrytown, New York. Solomon Weiss was convicted and fined $58,000 with five years’ community service attached. Jay Emmett pleaded guilty and received a suspended sentence. The prosecutor had alleged that the execs had in fact taken the fall for Ross, which the Warner boss denied. See Roger Cohen, “A $78 Million Year: Steve Ross Defends His Paycheck,”
New York Times,
March 22, 1992, and Bruck,
Master of the Game
.

Harry Evans hired by Ross:
Roger Smith, conversation with author, January 22, 2008.

Bill Ziff’s young woman:
News Corp. advisor interview.

Murdoch willing to give up citizenship:
Murdoch interview, October 9, 2007.

John Kluge is a bully and vulgarian:
Bill Abrams, “Metromedia’s Kluge’s Moves Made Him Wealthy—And He Shows No Signs of Retiring After Sale of Stations,”
Wall Street Journal,
May 8, 1985.

Kluge screws his shareholders.
Kluge took Metromedia private in 1984 in a $1.1 billion leveraged buyout, then turned around and sold off the company in bits for $5.5 billion, netting him personally $3 billion. As
Fortune
pointed out in 1987, “Everybody admits belatedly that Kluge is some sort of business genius…But how much is genius worth? $3 billion? And how much of this prescience did he impart to his shareholders? Gary Hector, “Are Shareholders Cheated by LBOs?”
Fortune,
January 19, 1987.

Murdoch meets Kluge:
Kiernan,
Citizen Murdoch,
272.

“Under Australian Accounting Principles”
Johnnie L. Roberts, Laura Landro, and John Marcom Jr., “Moguls Gamble: Rupert Murdoch Takes His Biggest Risk So Far in Purchasing Triangle,”
Wall Street Journal,
August 9, 1988.

“I need to sell you…”:
David Schneiderman, conversation with author, May 2001.

Murdoch buys a jet:
Barry Diller will buy the Gulfstream II from Fox when he resigns. Murdoch keeps the Gulfstream III.

William Collins & Sons deal:
Shawcross, 288–91, 333–36.

Peter Kann meets Murdoch during
South China Morning Post
deal:
Interview with Karen House, June 20, 2008.

Warren Buffett takes a position:
Interviews with Dow Jones executives and board members.

CHAPTER
8

Spiegelman’s vendetta:
E-mail from Ian Spiegelman that got him fired, obtained by
gawker.com
.

From: “Ian Spiegelman” [XXX]
To: [XXX]
CC: [XXX] [Richard Johnson] Subject: Abigail
Date: Mon, 21 Jun 2004 21:23:05-0400
Doug,
You picked the wrong boy to fuck with, you pussy. I am not like anyone you’ve come up against and I don’t consider there to be any rules in this. I break aging trust fund pussies like you as a matter of course. If you think you can bring it, then bring it, faggot. Because I know that in my world you’re nothing but a two-bit lame. Do you know what a lame is, Doug? A lame is an also-ran, a lame is the excuse for the person he would have been if he wasn’t so fucking weak, so completely pathetic.

You’re a lame and a pussy, Doug. And you should know better than to try and wage war on me. I’m better, stronger and smarter than you, you little Nancy. If I wanted to take your girl out, I would. You have nothing I can’t take away from you, you non-man. Doug, you little tiny fairy, you arrested boy, I will break your back over my knee in the press and I will push your face inside-out in private or public. You’ve crossed a line that you are currently too insane to see that you’ve crossed. But I am giving you this one freeby:

Mention my name anywhere, ever, again, and we’re going to find out two things: First, whose word means anything anymore in this town. Second, how many times I can slam my fist into your face before someone pulls me off you. Now I know you’ll try and get a restraining order against me, you suit-happy little pussy. After all, you live in your mother’s apartment. And that’s fine, go ahead. I just want you to know who you picked a problem with, pussy. You picked a fight with someone who doesn’t sleep until he’s paid it back, you limp little woman. Now you wait for it. Best,
Ian

Stern’s shakedown:
First reported by William Sherman, “The Billionaire, The
Post
and the $220G Shakedown: Page Six Writer Wanted $$$ to Stop Inaccuracies,”
Daily News
, April 7, 2006.

“Page Six” breaks the inside scoop on itself:
“Lies & Smears Aimed at
Post,
”
New York Post
, May 18, 2007.

Russell Crowe deal:
“Page Six,” ibid, included the following allegation without offering a denial: “The favor banking system also extended to Murdoch’s son Lachlan Murdoch, former publisher of the
New York Post
. After actor Russell Crowe purchased a house in Australia from Lachlan, Page Six was ordered to kill unflattering stories about him. Lachlan also extended this protection to famous friends like Nicole Kidman.”

Ginsberg negotiates confession
: Gary Ginsberg.

Col Allan’s worry:
Interviews with News Corp. executives.

Dunleavy drunk:
Charlie Leduff, “Neighborhood Report: Bending Elbows; Absolute Dunleavy: Vodka and Tonics at Langan’s,”
New York Times,
October 14, 2001.

Aurora:
Author visited Aurora and witnessed salsa dancing, as well as the Sydney
Daily Telegraph
’s editor, David Penberthy, arguing with the New South Wales premier (equivalent of governor) loudly down the phone over the next day’s spectacular front page. February 28, 2008.

“The horrible conditions…”
Chippindale and Horrie,
Stick It Up Your Punter!,
42–43.

“There’s levels and levels of editing”:
Murdoch interview, September 19, 2007.

rivers of gold:
Classified advertising historically has been called the “rivers of gold” in Australia.

If Murdoch had inherited Queensland Newspapers:
Lachlan Murdoch interview, February 29, 2008.

Frank Costello’s
National Enquirer
connections:
Erik Himmelsbach, “Book Review: ‘The Godfather of Tabloid: Generoso Pope Jr. and the National Enquirer’ by Jack Vitek,”
Los Angeles Times,
September 4, 2008.

“We voted to die with dignity”:
Shawcross,
Rupert Murdoch,
202.

“Everybody in this country wants to get ahead”:
Ibid., 201.

Rebekah Wade sits in jail…:
Michael Seamark and Stephen Wright, “The Fiery Redhead, two 999 calls, ex-Cabinet Minister and a Husband Nursing a Fat Lip,”
Daily Mail,
9.

Bill O’Reilly handled as internal matter:
News Corp. executives.

Col Allan and strip joints:
Col Allan’s sojourns at strip joints became an issue in the Australian election in 2007 when it was revealed that the soon-to-be prime minister, Kevin Rudd, went to Scores with Allan when he visited New York. Rudd’s poll numbers went up after the story broke in a Murdoch newspaper.

Col Allan misses Super Bowl moment:
The
New York Post
ran its upfront news Super Bowl coverage with the headline “Ad-Ventures in Pro Football—Winners & Losers for Commercials During Big Game,” published February 2, 2004. The story began: “It was a Super Bowl to remember, for what was seen—and what shouldn’t have been. The telecast featured a billion dollars’ worth of new ads for 32 products, ranging from pickup trucks and Pepsi to computers and potato chips. On the field, the Patriots held off the Panthers to win the title 32-29, while Janet Jackson and Justin Timberlake unsuccessfully tried to steal the limelight with a steamy ending to the halftime show. But, as always, it was the new ads that had fans talking.”

Col Allan’s genius:
The pros and cons discussed by News Corp. editors and executives.

Allan’s loyalty:
Legendary story repeated by News Corp. executives in interviews.

Larrikin Rebekah Wade:
Conversation with author.

Regan’s alleged anti-Semitic remarks:
Judith Regan settled a defamation suit against News Corp., in which she alleged that the company fabricated the fact she’d made anti-Semitic remarks, in January 2008. News Corp. and Regan issued a statement describing an “equitable, confidential settlement, with no admission of liability by any party.” News Corporation redacted its claim that she had made anti-Semitic remarks: “After carefully considering the matter, we accept Ms. Regan’s position that she did not say anything that was anti-Semitic in nature, and further believe that Ms. Regan is not anti-Semitic.”

Judith Regan’s fall from grace:
First reported in Michael Wolff, “The Trouble with Judith,”
Vanity Fair,
March 2007.

Murdoch’s relationship with Regan:
Interview with News Corp. executive.

Roger Ailes dates Regan and finds it “the scariest three hours of my life”:
Ailes conversation with author, autumn 2003.

Lisa Steele’s feelings about Murdoch:
Interviews with Bancroft family members, representatives, and Peter Kann.

May 14 and May 23 meetings:
Interviews with Bancroft family members and representatives.

“An influential member of the family…”:
Matthew Karnitschnig and Susan Warren, “Key Dow Jones Holder Cites Opposition to Murdoch Bid,”
Wall Street Journal,
May 24, 2007.

CHAPTER
9

 

Family being informed by reporters:
Interviews with Bancroft family members, Dow Jones board members, and executives.

Billy Cox’s e-mail:
Matthew Karnitschnig, Sarah Ellison, Susan Pulliam, and Susan Warren, “Family Dynamics: Behind the Bancrofts’ Shift at Dow Jones—Mounting Pressure from Dissident Wing Raises Odds of a Sale,” June 2, 2007.

May 31 board meeting:
Interviews with Dow Jones board members and advisors.

Leaks:
Interviews with Michael Elefante and Peter McPherson.

Evans pushed out at Random House:
Lorne Manly, “Harry Evans Leaves Random House for Zuckerman’s Shop,”
New York Observer,
November 30, 1997.

Evans pushed out by Zuckerman:
Donald Trelford, “Harry Calls It a Day,”
Evening Standard,
October 27, 1999.

Weinstein gets rid of Brown:
Phyllis Furman, “Tina Gets $1M in Miramax Split,”
Daily News,
July 25, 2002.

Murdoch’s nemesis:
Murdoch on Conrad Black, September 22, 2007; on Ted Turner, October 23, 2007; on Maxwell, numerous interviews.

“Murdoch drifted in like a ghost…”:
Morgan,
The Insider,
19.

Murdoch gossiping in business section:
Interviews with several business reporters and editors at News Corp. newspapers in Australia, London, and New York.

“Old Grumpy,”
Dover,
Rupert’s Adventures in China.

Uppers and downers:
Interviews with former News Corp. executives and “Banned by Fleet Street: Murdoch by His Butler,”
Punch,
July 4–17, 1998.

“Two-pot screamer”:
Interview with former News Corp. executive February 27.

“…intemperate and disagreeable”:
Giles,
Sundry Times,
212.

“in his impulsiveness”:
Ibid., 203–4.

“It is important here, for the sake”:
Ibid., 206.

“restless temperament”:
Ibid., 222.

“authoritarian management”:
Ibid., 217.

Robert Thomson under Murdoch’s thumb:
Former
Times
editor, conversation with author.

Havard mafia:
Jesse Angelo interview, October 29, 2007.

Roosevelt Island as Aussie enclave:
Col Allan, April 11, 2008.

Paula Zahn:
“I could have put a dead raccoon on the air this year and got a better rating than last year,” Roger Ailes told the
New York Times
when confronted with the fact that Zahn’s ratings on Fox had risen 90 percent. “That’s all just the growth of our network. All our shows are up.” Bill Carter, “Fox News Hires a Star Host over CNN Bid,” September 6, 2001.

Murdoch and Black deal:
Former
New York Post
reporter interview, confirmed by News Corp. executives.

Harvey Weinstein’s influence on “Page Six”:
Richard Johnson, conversation with author, autumn 2003.

Dubious motives and good journalism can coexist:
Jenkins,
Market for Glory,
27.

“He truly is Citizen Kane…”:
Morgan,
The Insider
, 75.

June 4 meeting:
Interviews with Murdoch, Peter McPherson, Michael Elefante, Lon Jacobs, and James Murdoch.

“I brought in James”:
Murdoch interview, September 19, 2007.

“That was actually my idea”:
Jimmy Lee interview, October 15, 2007.

Grand Havana Room:
Murdoch and Lon Jacobs interviews.

CHAPTER
10

 

Warren Buffett calling:
Peter McPherson, May 27, 2008.

Leslie Hill looking for buyers:
Interviews with Bancroft family members, Dow Jones executives, and board directors.

Brad Greenspan’s offer:
Brad Greenspan would later offer to lend Dow Jones the money to buy back half its stock from the family at $60 a share. Board members said they were not convinced he could source the funds.

Chris Bancroft’s pursuit:
Dow Jones executives and Bancroft family members and advisors.

Management as true believers:
Warren Phillips was actually perceived by Dow Jones executives and staff as something of a liberal.

Peter Kann’s politics:
Peter Kann interview, May 14, 2008.

Murdoch the preferred buyer:
Karen House, June 20, 2008.

“You can’t write a fifty-fifty editorial”:
As quoted in Tofel,
Restless Genius,
87.

“
On our editorial page…”:
Grimes, as quoted in
Wall Street Journal
editorial, “An Independent Newspaper. The Bancrofts and a Century of ‘Free People and Free Markets,’” June 6, 2007.

Wall Street Journal
editorial page history:
Richard J. Tofel interview, Spring 2008.

Murdoch loses circulation over front-page stories about Europe:
Murdoch interview, October 23, 2007.

Murdoch visits Kennedy:
Murdoch interview, March 21, 2008.

Murdoch as
Star
columnist:
Jann Wenner, conversation with author, 2008.

“The American Press might get…”:
Kiernan,
Citizen Murdoch,
145.

Whitlam stops speaking:
Ibid., 141.

CIA plot:
Ibid., 170.

Murdoch’s coverage of Whitlam’s Khemlani loans scandal:
Interviews with journalists at the
Australian
.

Marian Faris Stuntz, now Cita Stelzer, interview, November 12, 2007.

“Murdoch didn’t change a word of my copy…”:
Joyce Purnick interview, January 21, 2008.