Murdoch sued for buying his daughter's business for $675 million

Discussion in 'Media' started by Chris, Mar 17, 2011.

  1. Chris
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    Chris Gold Member

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    A New York bank's lawsuit challenging News Corp.'s planned $675-million purchase of Rupert Murdoch's daughter's television company raises a litany of criticisms that have long simmered below the surface of the $33-billion media giant.

    "Murdoch historically has operated News Corp. as his own private fiefdom with little or no effective oversight from the board," the 46-page complaint filed Wednesday in Delaware Chancery Court by Amalgamated Bank alleges. The bank, through its funds, owns nearly 1 million shares of News Corp. common stock. It manages $12 billion for institutional firms and public employee pension funds.

    Amalgamated's challenge was sparked by Murdoch's decision last month to purchase his daughter Elisabeth Murdoch's London-based television production company Shine Group — at an allegedly inflated value — with the primary reason of bringing her back into the News Corp. fold.

    "This is going to be a very interesting case. It will be a wonderful case for professors to teach to their corporate law classes," UCLA law professor Lynn A. Stout said. "What the plaintiffs are alleging is that Rupert Murdoch is using his firm to funnel money to his daughter."

    News Corp., Rupert Murdoch: Amalgamated Bank sues News Corp. over purchase of Shine Group - latimes.com
     
  2. JBeukema
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    JBeukema BANNED

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    It's illegal to sell something you own to someone you know? Or to pay too much or too little? I don't fully understand what legal objection there is to this.
     
  3. Midnight Marauder
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    Midnight Marauder BANNED

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    No, it's just not fair...
     
  4. Chris
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    Chris Gold Member

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    It is if you are cheating your stockholders.

    You don't know much about corporate law, do you?
     
  5. JBeukema
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    JBeukema BANNED

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    Explain it to me, Chris

    How is he cheating his stockholders by buying this company?
     

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