The Guardian is running a big story today on how U.S. shareholders are “deeply troubled” by the testimonies provided by Rupert and James Murdoch before the Leveson Inquiry.
“U.S. shareholders are said to be worried that the Murdochs’ testimony this week has raised new questions about the management of the company and posed potential threats to other areas of its media empire,” the report claims.
And then it goes on to quote from a “senior policy analyst with Change To Win (CtW), a U.S. advisory group that works with pension funds with over $200bn in assets.”
According to the analyst, Michael Pryce-Jones, the Murdochs’ testimony raised two immediate concerns for shareholders: the future of the firm’s control of broadcaster BSkyB and the ethics of top management.
I am sure some shareholders are nervous about what is unfolding in the UK vis-à-vis phone hacking, public inquiries and the on-going investigation by broadcast watchdog Ofcom. But are they the immediately relevant shareholders?
The Guardian should have explained who Change To Win is? It isn’t just some kind of neutral advisory group. It was founded in 2006 as the CtW Investment Group and, as the organization explains, it “works with pension funds sponsored by unions affiliated with Change to Win, a federation of unions representing nearly 5.5 million members, to enhance long-term shareholder returns through active ownership.”
The leadership council of the Change To Win federation consists of Joseph Hansen of the United Food and Commercial Workers; James P. Hoffa of the Teamsters; Geralyn Lutty of the United Food and Commercial Workers; Mary Kay Henry of the Service Employees International Union; Arturo Rodriguez of the United Farm Workers of America; Eliseo Medina of the Service Employees Union; and Tom Woodruff of the Service Employees International Union.
So, I think, we can take it that there is no love lost for Rupert M. from such an organization. Does that mean their views should be discounted? Of course not. If the union pension funds have investments in the Murdoch media empire, they have every right to voice their opinion and concerns. But it would have been more honest journalism for The Guardian to explain exactly who Change To Win is and where they might be coming from.
Of course, if the paper had done so, then the story would have been weakened. Maybe that explains the omission. And also why the report glides over as quickly as it can this bit of contradiction: “Nonetheless News Corp shares rose during the three days of testimony, rising 0.7% to $19.76 on Thursday.”
Hmm. In the end, the only important News Corp. shareholders are the top five in voting terms: the Murdoch family and Rupert Murdoch, who control 39.74 percent of the votes in News Corp.; Alwaleed bin Talal Alsaud (7.04 percent); Invesco (1.8 percent); Bank of New York Mellon (1.19 percent); and Taube Hodson Stonex (1.07percent).