This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The 5 Dumbest Things on Wall Street: July 8

3. More Nonsense At News Corp.

It's all fun and games at News Corp. (NWS) until Rupert Murdoch loses an acquisition.

The media giant's chairman could see his campaign to purchase British Sky Broadcasting compromised in the wake of the phone hacking scandal at U.K. tabloid News of the World, which will be shut down on Sunday after publishing for nearly 170 years.

Murdoch was scrutinized not just in the British press this week, but in Parliament as well with Prime Minister David Cameron slamming News of the World for allegedly hacking into a murdered girl's voice mail back in 2002.

Private detective, Glenn Mulcaire, who was working for the paper, allegedly accessed Milly Dowler's phone messages after she was abducted. Mulcaire is said to have deleted some messages on Dowler's phone, complicating the police investigation. Dowler's killer was finally convicted last month.

This isn't the first time News of the World has been accused of privacy invasion either. The company has been sued by more than two dozen politicians, celebrities and athletes for allegedly listening in on their conversations and voice mails.

News Corp. has apologized and offered to settle some of those other cases, and the company says it's still investigating the Dowler matter. Some advertisers didn't wait around for the results of the investigation, however. Ford (F) jumped ship quickly, claiming it is "a company which cares about the standards of behavior of its own people and those it deals with externally."

Of course, the motor company had no problem with standards when it was showing its cars alongside the tabloid's topless Page 3 girls. Still, Ford's decision opened the door for other big ad buyers to bail on News Corp. rather than face growing public pressure to boycott the company.

And the pressure is rising. A new campaign, using the slogan "No time to give Murdoch more power," is petitioning the government to prevent the company from taking over the part of satellite broadcaster Sky that it does not yet own.

Last week, the U.K.'s Department of Media gave its blessing to the transaction after News Corp. agreed to spin off BSkyB's Sky News channel to ease competition concerns. Final government approval was expected to come by the end of the week, but recent developments in the hacking case may halt the buyout. Britain's media regulator said on Wednesday that it is assessing whether News Corp. is fit to hold a broadcasting license.

Then again, a postponement could be good news for Murdoch. After suffering massive write-downs following his Myspace and Dow Jones impulse purchases, any delay in this deal may help save Murdoch from his own worst enemy: himself.

3 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs