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
AOL Readies Slate of Web Original Video for the U.K.

LONDON  – AOL has been expanding its video offering via its web originals and its distribution play across screens.   This initiative is expanding internationally as  AOL readies a slate  of Web original premium video for the U.K. market, says James Harris, Agency Lead, International, in this ...

image
Xaxis’ Ad-Synch Product Rolls Out in Nine Markets: “It Captures the Imagination of our Clients”...

LONDON – It’s a bit like finding the “lost GRP,” says  Caspar Schlickum, CEO of Xaxis EMEA, explaining the value of the agency’s new ad-synch product, in this interview with Beet.TV He says that the platform serves synched ads to  multiscreen viewers, many who reach for their ...

image
Rubicon Taps Global Publishers’ “Demand for Greater Efficiency”

LONDON –  The Rubicon Project, the Los Angeles-based adtech firm, has been rapidly expanding globally as publishers demand greater efficiency in managing their ad sales, says Jay Stevens,  GM for International, in this interview with Beet.TV    Rubicon helps a number of big global publishers ...

image
Data Can Be Used as a ‘Consumer Fingerprint’, SMG’s Simpson

LONDON — Data is rooted in numbers, but the use of it is most effective when brands view data as a “consumer fingerprint,” says Steve Simpson, Exec VP and Global Managing Director of Digital Strategy, Data and Analytics at SMG, in an interview with Beet.TV. “Think about it as a ...

image
Vice Sees Huge Upside for News Operation, Brian Dietz Tells Beet.TV

In just the past six month, Vice has become “one of the biggest newscasts in the country and possibly the world,” says Vice SVP for sales Brian Dietz in this segment on Beet.TV.  Dietz tells our Ashley Swartz that Vice news has some 650K subscribers on YouTube and has had 70 million videos ...

Ashley Swartz, Furious Minds 2
VOD Could Shepherd More Programmatic Buying in TV, Ashley Swartz

Video-on-demand inventory is the next logical entry point for programmatic style advertising into linear TV, says Ashley J. Swartz, CEO and Founder of Furious Minds, in an interview with Beet.TV. “VOD is the first inventory that will come online for dynamic ad insertion,” she says. “The ...

image
Razorfish Media Chief Kathuria on Scale, TV Dollars, and Big Data

Moving TV dollars to online remains a challenge says Vik Kathuria, Global Chief Media Officer at Razorfish in an interview with Beet.TV. “It’s very hard to find an apples to apples comparison in terms of TV money and where to move it. If you are a TV buyer, you want to scale. To effectively move ...

Steve Parker, SMG UK
Programmatic Poised to Impact TV Buying, SMG’s Steve Parker says

LONDON — Programmatic advertising not only has the potential to influence digital advertising, but also TV, says Steve Parker, co-CEO of Starcom MediaVest Group in London, in an interview with Beet.TV. “What we’re learning around programmatic video allows us to transform our relationship ...

image
More Agencies to Launch Private Exchanges, Zenith’s Zilberbrand

As programmatic buying expands, look for agencies to build more private marketplaces in the next 12 to 18 months, says Julian Zilberbrand, EVP Activation Standards, Insights, & Technology at ZenithOptimedia Group in an interview with Beet.TV. That’s because private exchanges provide an ecosystem ...

image
Programmatic TV Buying on the Horizon

Programmatic advertising has flourished digitally, but in time it will spread further to TV, says Brendan Condon, CEO of Media Property Holdings, which operates like an ad network but for TV buying by aggregating TV spend across multichannel video providers, syndicators and local broadcasters. But there are ...

image
Ad Tech Lets Advertisers Run Their Own Show: MediaMath’s Cox

Larger advertisers are beginning to realize that, with a range of new online technology, they can disintermediate their agencies to take more control of their own campaign spending, says an ad tech exec. “We’re seeing an increase in operators wanting to run their own marketing programs directly using ...

image
2014 Is ‘The Year Of Private Marketplaces’: BrightRoll’s Avila

The next stage in the adoption of  automated ad-trading tools, private marketplaces are helping so-called “programmatic” practices flourish, says an exec in the space. “If 2013 was the year of real-time bidding and programmatic coming in to reality, 2014 is the year of private ...

loader