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In 2002, Metromedia International Group (whose largest outside shareholder was Rupert Murdoch’s News Corp.) started to run into trouble, eventually ending with the stock crashing from $20 to only 1 CENT (more details at The chief reasons for this MASSIVE DEVALUATION were numerous legal violations and missing assets in the realm of over $140 million. However, before any of these acts occurred, multiple Senators, holding crucial seats on committees which would be responsible for investigating the events to come, received $1,000 contributions from Murdoch and top Metromedia Execs. Is this really just a coincidence?

The contributions were made within days of each-other to top committee members, including Charles Grassley (then chair of the Senate Finance Committee) and Charles Schumer (Senate Judiciary Committee member). These guys disagree completely on politics & policy, their only connection is that they received $1,000 contributions from Metromedia connected donors. And all of this was done conveniently before the violations and missing assets.

Later, Sen. Grassley was approached for help and wrote a letter stating to the SEC to effect of, "This guy wants you to investigate, but I’m just a middleman." His office also ignored requests to hold a committee hearing... Schumer’s office ignored the Metromedia collapse altogether, which is weird considering he’s not exactly Mr. Murdoch’s biggest fan.

Here’s the donation breakdown:

Received by: Contributor Amount Date source link
Grassley, Charles E.
John. W. Kluge $1,000.00 6/17/2002
Stuart Subotnick $1,000.00 6/17/2002
Rupert Murdoch $1,000.00 6/17/2002

Schumer, Charles E.
John. W. Kluge $1,000.00 3/15/2002
Stuart Subotnick $1,000.00 3/15/2002
John S. Chalsty $1,000.00 3/19/2002
Rupert Murdoch $2,000.00 12/8/2003

Isn’t this a conflict of interest? Did their contributions buy influence with congressmen who should have represented their voters? Were these contributions the reason that no Senator has moved forward with hearings about the Metromedia collapse? Is Fox News really fair and balanced when its founder greased politicians, possibly against shareholder interests. You decide.

Continuation of Prior Post:

Originally posted to OuncesLbs on Fri Jul 25, 2008 at 03:42 PM PDT.


Did Murdoch's donations conflict with the interests of other Metromedia shareholders?

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