BSkyB faces fall out from hacking, claims Telegraph

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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.

BS