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
Comcast Sees Big Growth in C3 VOD Viewing

While TV Everywhere tends to dominates the chatter about non-linear viewing, many cablers are actively marketing and delivering viewers for their existing VOD services. Comcast, for instance, logged its 30 billionth program viewed on demand in the last year and has seen 100% growth in time spent viewing in ...

image
Passion, Entertainment, Education Key To Brand Video: BPN’s Hiland

CHICAGO — What are the key ingredients to a making a video that works both as editorial and marketing? One big barbecue food maker mixed entertainment, education and a healthy dose of passion. IPG’s BPN chief strategy officer Chris Hiland tells Beet.TV in this recorded panel interview how his ...

image
Video Beats Display, Nearly As Good As TV: comScore’s Fulgoni

CHICAGO — Digital video is performing highly as an advertising medium, and nearly approaching the volume of TV in some quarters, says one of the leaders of venerable media metrics house comScore. “You need about three times as many display impressions to get to the same lift in impact which you ...

image
IAB’s Shah: Too Many Viewability Platforms Will Hurt Industry

Viewability, the recently-defined metric that defines whether an online ad slot is really viewable by consumers is a wholesale change for the industry – but its benefits may be blunted as too many platforms are vying to help advertisers capitalize, according to Ziff Davis CEO and IAB chair Vivek Shah. ...

image
Marketers Can Reach ‘Meerkats’ With Mobile: Weather Channel’s Dan Young

LONDON — Mobile video heralds a chance for advertisers to reach consumers who may appear to be distracted or in the outdoors – but who are actually highly engaged and watching TV, according to Weather Channel international yield and programmatic Daniel Young. “It’s personal,” Young ...

image
Ooyala Buying Videoplaza To Enhance Video Advertising Breadth

They are two of the best-known names in online video service provision – and now they are coming together as one. Video streaming service Ooyala, itself now owned by Australian telco Telstra, is acquiring its video advertising peer Videoplaza. The buying company says the deal “allows Ooyala to ...

image
Videology Opens TV Practice To Make Buying Smarter

Videology has established a strong profile for itself by helping TV ad buyers make intelligent decisions to buy online video ads. Now it wants to help them buy good old fashioned TV ads in the same way. The New York-based company is opening a dedicated TV practice. As CEO Scott Ferber tells The Wall Street ...

image
Interstitial Better Than Auto-Play: Jun CEO Mulls New Mobile Ads

CHICAGO – Ad network Jun Group’s CEO Mitchell Reichgut “recoils” when he hears about auto-playing ads, the new format being picked by Facebook and others to deliver video messages. But that doesn’t mean he won’t try introducing interruptive ads of his own. ...

image
Facebook is Redefining the Value of of Video Autoplay, Vivek Shah

Historically, videos which start automatically on Web pages and in mobile apps can be offensive to users, but the approach taken by Facebook by setting videos to autoplay without sound, is an important step forward for publishers and marketers, says Vivek Shah, chairman of the IAB and CEO of Ziff Davis, in ...

image
Mindshare’s Cridlin to Brands: Stop Seeking Fans on Facebook — “Organic Reach Is Non-Existent”

CHICAGO – Put your money where your mouth is. That’s the new mantra of digital ad execs who believe gaining free audiences by building viral social audiences is over. “There is an urban myth of organic reach, of something going viral,” Mindshare digital innovation and strategy MD Jim ...

image
AETNA Allocates Most Ad Spend to Digital; Big Piece is Programmatic Video

For the giant insurer AETNA, a majority of its advertising budget is spent on digital media and at least 10 percent of the total spend going to programmatic video, says Gary Templeton, head of media,  in this interview with Beet.TV With advent of the Affordable Health Care Act, AETNA has been focused  on ...

image
Brand Pair-Ups with Publishers Can Drive Key Metrics, Maxus’ Bahler

CHICAGO — Working with a publisher partner can be a smart strategy for branded content, especially to drive awareness and visibility, says Spencer Bahler, Managing Director-Chicago at Maxus in an interview with Beet.TV. “We have some challenger brands we represent and we look to partnerships to ...

loader