News Corp., Dow Jones monitor linked
News Corp., Dow Jones monitor linked
BOSTON/NEW YORK - Dow Jones & Co. Inc. said on Thursday it did not know that one of the people named to protect its editorial independence after it becomes part of News Corp. runs a foundation that received $2.5 million in funding from Rupert Murdoch’s global media conglomerate.
News Corp. selected Massachusetts Institute of Technology Professor Nicholas Negroponte to be part of the five-member special committee that will oversee the editorial independence of Dow Jones’s news operations. The move was part of its $5.6 billion deal to buy the publisher of the Wall Street Journal.
When asked if the donation compromised Negroponte as an independent member of a group designed to safeguard Dow Jones’ editorial integrity, a spokeswoman for Dow Jones said it had confidence in him.
“We are confident of the capability of the individuals to make independent decisions,” said Dow Jones spokeswoman Linda Dunbar, adding that the company had not been aware of the donation.
In an interview with Reuters conducted by e-mail in May, Negroponte described Murdoch as a personal friend and a key backer of the One Laptop per Child (OLPC) foundation that makes inexpensive laptop computers for poor children.
News Corp. is one of 11 parties, including Google Inc. and Advanced Micro Devices Inc, that each committed to donate $2.5 million to the organization, Negroponte said.
Objectivity questioned
News Corp.’s donation now raises issues over Negroponte’s objectivity, a journalism expert said.
“If in fact Nicholas’ foundation is receiving money from News Corp., that creates the perception and, quite possibly, the reality of a conflict,” said Louis Ureneck, chairman of the journalism department at Boston University.
“Is a person truly independent if a decision he makes puts at risk a significant grant to his foundation? It strikes me that there is a conflict,” Ureneck added.
It was not immediately clear if members of Dow Jones’ controlling Bancroft family, who negotiated and agreed upon the structure of the independent board, were aware of the payment.
A Bancroft family representative was not immediately reachable. Some members of the family had opposed the deal out of fear that Murdoch would interfere with Dow Jones’s news operations to further his business interests.
To be sure, another member of the independent committee, Thomas Bray, has ties to Dow Jones. Bray, the former Detroit News editorial page editor, has written for Dow Jones’s OpinionJournal.com. The Wall Street Journal reported that he will serve as chairman of the committee.
Asked if News Corp. saw any conflicts of interest in Negroponte’s appointment, the company said no and defended his integrity.
News Corp. defends choice
“Nicholas Negroponte enjoys tremendous support and respect across the media industry, and both Dow Jones and News Corp. are proud to have him as an independent member of the special committee,” a News Corp. spokesman said.
He added: “OLPC is a well-respected charity with very broad corporate support. We would hope more corporations would get involved to bring affordable laptops to every child in the world.”
Negroponte declined comment on Thursday, saying he had been asked to refer all media inquiries to News Corp.
Dow Jones agreed on Wednesday to be sold to News Corp. for $5.6 billion including debt.
During the interview in May, Negroponte said he had known Murdoch since 1986 and worked with him on various projects since then.
“More recently I have come to know (his wife) Wendi and consider Rupert to be one of OLPC’s chief strategists,” Negroponte said. “I ask his advice all the time. He asks mine on matters related to computers and communications. I would like to think I have been an influence on his distinctly digital life these days.”
In September 2006, Murdoch entertained the foundation’s board of directors at a New York restaurant and the group held its board meeting at News Corp. headquarters the next day.
Last month Negroponte’s foundation disclosed that News Corp.’s MySpace social networking Web site is developing an Internet community for the poor children who receive the group’s laptop computers.
News Corp. Executive Vice President Jeremy Philips, who oversees Internet investments for the company, holds a seat on the OLPC board.
No comments:
Post a Comment