Barefoot Investor: Dow Jones CEO Les Hinton Resign

Diversified media conglomerate News Corp. (NWS: News ) said Friday that Les Hinton, Chief Executive Officer of Dow Jones & Co. and Publisher of The Wall Street Journal, has resigned, effective immediately.
Hinton's resignation comes hours after Rebekah Brooks stepped down as CEO of News International, News Corp.'s U.K. publishing unit, amid probe of a phone-hacking scandal that led to the closure of the 168-year old tabloid News of the World recently.

"That I was ignorant of what apparently happened is irrelevant and in the circumstances I feel it is proper for me to resign from News Corp. and apologize to those hurt by the actions of News of the World," Hinton commented on his resignation.
In fact, Brooks had taken over as chief of News International from Hinton, who had twice testified to a parliamentary committee, in 2007 and 2009, that the phone hacking involved just one News of the World journalist.
"When I left News International in December 2007, I believed that the rotten element at the News of the World had been eliminated; that important lessons had been learned; and that journalistic integrity was restored," Hinton said in a statement Friday. "My testimonies before the Culture Media and Sport Select Committee were given honestly." Hinton, a U.S. citizen since 1985, was also President and Chief Executive of News America Publishing, responsible News Corp.'s U.S. publishing operations, and Chairman and Chief Executive of Fox Televisions before his stint at News International. Hinton led Dow Jones since December 2007.

Brooks was editor of News of the World at the time the phone of a 13-year-old murdered schoolgirl was allegedly hacked. Later, it emerged that celebrities, politicians and other crime victims may also have been targeted.

The phone-hacking allegations have triggered a public as well as political outrage in Britain. The alleged scandal forced News Corp. to withdraw its bid to acquire the remaining 60.1% percent stake in satellite broadcaster British Sky Broadcasting Group Plc (BSYBY.PK, BSY.L) it does already not own.
British Prime Minister David Cameron urged Murdoch to drop the bid and advised him to focus on "cleaning up the mess created by a scandal over alleged illegal reporting practices."

Meanwhile, the British House of Commons Culture, Media and Sport Committee confirmed that News Corp. CEO Rupert Murdoch, James Murdoch, who leads the international operations of the parent company, and Brooks will appear before the Select Committee in Parliament on July 19 to give evidence on developments relating to the hacking, following up on an earlier report by its predecessor committee.(RTT News)


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