Murdoch’s “Emotional Bias” has Hammered News Corp Shares, Dartmouth/Tuck Professor

13-03-01-04-38.jpg
By on 02/06/2009 4:58 PM @beet_tv

With news of a dramatic write-down and loss at News Corp, one academic says that the company's poor performance and reception on Wall Street can be laid at the feet of founder Rupert Murdoch who operates with "emotional bias." 

This was most clearly demonstrated by his purchase of Dow Jones, parent of the the Wall Street Journal, says Syd Finkelstein, Professor of Management at the Tuck School of Business at Dartmouth.

He says part of the company's poor stock performance is due to investors' factoring in a "red flag discount to Rupert Murdoch."

Finkelstein was in New York today to promote his new book, Think Again, Why Good Leaders Make Bad Decisions, Harvard Press.  

Earlier today, Finkelstein appeared on Yahoo! Finance Tech Ticker with Henry Blodget and Aaron Task.  Here's the video.

More analysis on News Corp loss by Peter Kafka at AllThingsD. And here's big round-up on developments at News Corp in the Financial Times.

Update:  2/23:  The New York Times quotes Finkelstein today in a story about Murdoch and the newspaper acquisition strategy: Here's what he told the paper:

“Emotional biases and attachments play into our strategic decisions in
really significant ways,” said Sydney Finkelstein, a professor at the
Tuck School of Business at Dartmouth. “And with Rupert Murdoch, there’s
a general attachment to the newspaper business because that’s where he
got his start, and he really has a feel for it, and also an attachment
to the idea of owning The Wall Street Journal.”

— Andy Plesser, Executive Producer

Disclaimer:  The Tuck School of Business at Dartmouth is a client of Plesser Holland public relations.

Recent Videos
image
Xaxis’ Lesser Followed The Paternal Path To Change Advertising

Why did you get in to advertising? For Brian Lesser, it was because his dad showed him the ropes. Now Lesser runs WPP-owned Xaxis, one of the technology companies helping make advertising more targeted and more relevant. “When I was a kid, my father ran advertising agencies … I always liked the ...

519025316_c_648_367
From Mississippi Teenage DJ to Media Mogul, the Amazing Journey of Bob Pittman

Now the chairman and CEO of iHeartMedia, Inc., Bob Pittman got his start in the media business as a 15-year-old disc jockey in Mississippi, where he grew up. Motivated to earn money so he could take airplane flying lessons, he first applied to the local men’s clothing store and then tried to get a job ...

image
Privacy Concerns Slowing Ad Targeting In Europe: Furious Corp’s Swartz

Through the eyes of a US marketing exec, Europeans are, notoriously, relatively more concerned about how ad targeting might impinge on their personal data. A recent report from Belgium’s data protection agency claimed Facebook tracks computers of users without their consent, whether they are logged in ...

image
Research: Digital Video Growing On Live, Long-Form Demand

The old adage used to be that digital video had to be short, that viewers wouldn’t sit and watch it in long sessions. That may have been true on the desktop – but video ad tech company FreeWheel’s latest quarterly market report shows new devices are now driving online video ever more ...

image
Advertisers Lagging Consumers On Mobile: IPG’s Johnson

The data continues to point to a disconnect – consumers have flocked to consume content and engage socially using mobile devices, over desktop alternatives. So why have advertisers still not piled in to mobile at the same rate? “It’s sometimes an afterthought,” IPG Mediabrands global ...

image
IPG Chairman Emeritus David Bell: “An Igniter of People’s Talents”

Interpublic Group’s chairman emeritus David Bell grew up expecting to become a litigator, but when he decided at the last minute not to go to law school and turned his sights to advertising, he got lucky with admission to Leo Burnett’s training program. “I was the only one of 19 that didn’t have an ...

Irwin Gotlieb
The Thrill of the Media Biz Past, Present and Future: an Interview with Irwin Gotlieb

In Irwin Gotlieb’s view, what should make the ad industry exciting to young people is the variety of skills they’ll get to learn and clients they’ll get to serve. “If someone were to watch me in any given day, I still read scripts for television shows, I still make calls on development, and yet in ...

image
Creative Directors Are Warming Up to Data: Annalect’s Matts

Some creatives have continued to view data as an intrusion that undermines their work by valuing algorithms over instincts, but that may be starting to change. One development that creatives are excited about is the availability of programmatic technology that allows them to show hundreds of different ...

image
AdTech’s Torrid M&A Pace Powered by New Buyers, LUMA’s Kawaja

Through January to October 2014, the total value of ad tech deals totalled $3.8 billion, according to a report from investment bank Coady Diemar Partners at the time. And things are about to get bigger. Terence Kawaja, founder and CEO of media M&A advisory LUMA Partners, says his firm is advising on ...

image
AppNexus Replays Video Ambitions, Starting This Summer

It’s four years since ad tech company AppNexus first tried helping advertisers tackle targeted ad buying on digital video, an attempt it later aborted. But now the New York-based outfit is ready to reboot its video plan. AppNexus CEO Brian O’Kelley, in this video interview with Beet.TV, says: ...

image
TV-Synced Digital Ads Next Best To Addressable TV: IPG’s Stoller

We may not yet have reached the point at which so-called “addressable TV”, the ability to target individual connected televisions with unique advertising, is mass-market – but we have reached a close second, thanks to a combination of dumb TVs and smart devices. “Everyone would like ...

image
Addressable Screens Will Deliver High ROI: IPG Mediabrands’ Tajer

The scope and scale of the addressable TV market is bound to grow over the coming years, but that’s not all. Addressable screens are also likely to come onto the scene as TV operators stitch more devices into their content ecosystems, according to Henry Tajer, who became CEO of IPG Mediabrands in May. ...

loader