Russian Gov't Intimidates, Vindicates Murdoch

Rupert Murdoch's concerns about doing business in Russia appear to be entirely justified. But did voicing them earn him a reprisal from the Kremlin?

On last month's earnings call, the News Corp. chairman was bracingly frank when asked about his plans to sell News Outdoor Russia, the country's biggest outdoor-advertising firm. "We have great growing business there but just -- this is purely me, I'm sorry -- the more I read about investments in Russia, the less I like the feel of it," he told analysts. "The more successful we'd be, the more vulnerable we'd be to have it stolen from us, so there we sell now."

And not a moment too soon for the Russian authorities, apparently, who dispatched investigators to search NOR's Moscow offices yesterday. The search was reportedly connected to an inquiry into negligence charges against a city official who handles advertising. Whether it was meant to double as a message is something Murdoch must decide for himself. Maybe we'll find out on the next earnings call.