Domestic, Investors, Required - Written by on Wednesday, August 31, 2011 7:35 - 0 Comments

News Corp.’s Wireless Generation Loses $27-million Education Contract

Rupert Murdoch, Chairman and Chief Executive Officer, News Corporation, USA and Co-Chair, Annual Meeting 2009

Rupert Murdoch, photo: flickr user, World Economic Forum

New York— Rupert Murdoch’s News Corp. (NASDAQ: NWS) was vying for a state contract valued at $27-million through Wireless Generation to provide analytical tools to analyze student test performance in New York, reports’s .

As background, remember that News Corp. paid $360-million late last year for controlling interest in Wireless Generation. The New York Times reports that Wireless Generation is also a lead partner in New York’s School of One, which offers customized lesson plans akin to playlists for students.

Kramer writes that New York State comptroller Thomas DiNapoli cites the News of the World hacking scandal as the reason for rejecting Brooklyn, NY-based Wireless Generation’s bid:

According to the Daily News, DiNapoli told the state education department:

“In light of the significant ongoing investigations and continuing revelations with respect to News Corp., we are returning the contract with Wireless Generation unapproved.”

In addition to the UK efforts that have resulted in numerous arrests of News International and NOTW execs, those “ongoing investigations” include the FBI’s ongoing look at allegations that the now-defunct tabloid tried to hack the voice mail of 9/11 victims and their families. DiNapoli also cited an “incomplete record” of News Corp.‘s education qualifications, which seems murky given that the company was qualified for education contracts across the U.S., including the New York city schools, before it was acquired by News Corp. as a cornerstone for its education initiatives.

via NY Official Cites Hacking In Rejection Of News Corp. Education Contract | paidContent.



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