July 16, 2011- On Friday the Dow Jones chief executive Les Hinton announced he was resigning. His resignation is due to the latest development in the News of the World phone hacking scandal. His resignation came after Rebakah Brooks resigned as News International CEO earlier in the day.
Hinton was executive chairman at News International prior to the Dow Jones and was at that post when the alleged phone hacking took placed by News of the World. He also preceded Ms. Brooks at the position. Hinton announced his resignation in a memo to his staff saying, “it is a very sad day for me.”
The FBI has decided to get involved as they consider whether or not to probe into the allegations that victims, survivors and their families of 9/11 had their phones hacked.
Along with Dow Jones, other outlets owned by News Corp. include Fox News, the New York Post and The Wall Street Journal. The media giant also withdrew their multi-billion dollar bid to buy British Sky Broadcasting. They announced last Tuesday the approval by their board of directors of a stock repurchase of $5 billion that will take place later in the year.
This week News Corps. stock dropped 7% due to all the scandals and resignations that have happened in the past two weeks.