The reputational damage done to Rupert Murdoch's News Corporation may be spreading to its cash cow, British Sky Broadcasting, if the Telegraph is to be believed.
The paper says the UK's broadcasting regulator, Ofcom, is considering whether information coming out of the Leveson inquiry, set up in response to the scandal over phone hacking, undermines the "fit and proper person" test applied to the granting of broadcasting licences.
Rupert Murdoch's son, James Murdoch, has already resigned as Executive Chairman of News International, the UK newspaper business that has caused so much grief for its US parent.
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He remains, however, Chairman of British Sky Broadcasting because of News Corporation's 39% stake in the satellite broadcaster.
The Telegraph says Ofcom has begun an operation to monitor what emerges from Leveson. There is also a suggestion that if MP's challenge James Murdoch's testimony to the Culture Media and Sport Parliamentary select committee he may come under pressure to resign from BSkyB, or News Corp. may have to sell part of its stake in the company.
This news doesn't appear to have dented BSkyB's share price, the stock was up 0.86% by 09:14.
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