Good news, bad news for Murdoch empire

LOS ANGELES – James Murdoch cleared the first hurdle in his bid to hold onto power in his father Rupert’s company, News Corp., when he was retained as head of Britain’s largest pay-TV provider despite questions about his handling of the phone-hacking scandal that has engulfed the media empire.

In London, the board of British Sky Broadcasting, which provides TV service to 10 million homes in Britain and Ireland, reaffirmed its support Thursday for James Murdoch to continue as chairman.

The move was a bit of good news for the Murdoch clan after three weeks of daily drubbings in rival newspapers and pointed questions from members of Parliament.

“I would not say that we have an all-clear sign,” said Doug Creutz, media analyst with Cowen and Co. “But at least as far as BSkyB is concerned, they seem to be signaling that this situation might begin to recede, allowing investors to move forward.”

But more sordid allegations emerged Thursday. London’s Guardian newspaper reported that News of the World reporters might have intercepted messages left on the cellphone of the mother of a slain 8-year-old girl, Sarah Payne. The mother accepted the cellphone from the then-editor of the tabloid, Rebekah Brooks, to stay in touch with supporters. A prominent Parliament member called the revelation “a new low.”

News Corp. responded with a statement: “News International takes this matter very seriously and is deeply concerned like everyone. As the facts are established, the company and the independent Management and Standards Committee will take all appropriate actions … .”