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tdp2664 InvestorPlace News Corp. ( NASDAQ : NWS ), which is embroiled in a phone hacking scandal that grows more embarrassing by the hour, has decided to ask shareholders for suggestions on how to improve its corporate governance and to address other concerns. This is so absurd it's almost laughable. According to Bloomberg News, some big-name shareholders have taken the New York-based media conglomerate up on its offer , including the California State Teachers' Retirement System. Interestingly, the discussions are being led by the company's well-liked chief operating officer, Chase Carey, and not any member of the Murdoch family. The meetings are a publicity stunt. Carey knows very well what shareholders are concerned about: the phone hacking scandal and the lack of succession plan. CEO Rupert Murdoch is 80 years old and repeatedly has apologized for the bad behavior of the News of the World's bad behavior. He also can't decode which one of his children to put in charge of the parent of Fox News Channel and 20th Century Fox. Rupert Murdoch's supposed favorite was first thought to be his eldest son Lachlan, who quit News Corp. in 2005, His younger son James was next. He worked his way up the executive ladder before he assumed control of the firm's businesses in Europe and Asia in 2007. James Murdoch's reputation was sullied after he allegedly gave misleading testimony before the U.K. Parliament about the News of the World scandal. The younger Murdoch has denied any wrongdoing, but reports are rampant that his departure is imminent. Of course, there is daughter Elisabeth. News Corp. acquired her TV production company, Shine Group, for $663 million. Originally, she was expected to join News Corp.'s board in 2012. Later, the company thought better of it . She supposedly blames her brother for helping wreck the company. In most companies, that would be a full agenda for a shareholder meeting, but News Corp. is not most companies. One topic that is bound to come up will be the company's newspapers. Murdoch loves the publishing business beyond all rationality. The company gobbled up Dow Jones & Co., the publisher of The Wall Street Journal , for $5.6 billion in 2007. That was a 67% premium for a company nobody else wanted. Maybe it's worth hanging onto, but why does the News Corp. need "three national news brands in the U.K., almost 150 national, capital city and suburban news brands in Australia, the New York Post and Community Newspaper Group in the U.S."? The company does not break out the performance of its individual papers, but some, such as the Post , have been widely reported to be money-losers. The publishing business accounted for 26% of News Corp.'s revenue in the last quarter and 20% of its operating income. Yet for months, the business has gobbled up a huge amount of management's time. News of the World , for instance, was barely a rounding error for News Corp. Though it is trivial financially, the former tabloid has managed to cost the company billions in market capitalization. Shareholders are bound to ask how such a thing could have happened. Maybe the purpose of these meetings is to see whether one or both Murdochs should go. I vote for both. James' reputation has been tainted forever because of the hacking scandal. He needs to be shown the door and given the chance to pursue other career opportunities. Rupert is no prize, either. The elder Murdoch, who built the company into an international media powerhouse, would have been tossed aside by the board following the MySpace fiasco. News Corp. acquired the pioneering social media site for $580 million six years ago, then watched it get pummeled into roadkill by Facebook, among others. The company unloaded the site for $35 million in June. Remember, MySpace was supposed to be the cornerstone of News Corp.'s web strategy. Interesting how News Corp. discovered the real meaning of shareholder value at this late hour. It's the reason why this stock should be avoided. Jonathan Berr does not own shares of the companies that are listed.
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