What Really Happened to News Corp.'s Xmas Party

In this economic climate, calling off your company's giant, lavish, heavily written-about annual holiday party is bound to stoke speculation -- especially if your company is a controversial media conglomerate that recently made a big bet in a market sector that has been tanking.

So take note: The fact that News Corp. won't be holding its usual Yuletide festivities isn't what you think it is.

New York Times reporter Brian Stelter stirred the pot last week with a tweet last week suggesting that Fox News had followed Hearst and ABC News (and now, apparently, Viacom) in calling off its party to save money. In fact, a Fox News spokeswoman notes that the network doesn't usually have its own celebration, participating in the central one with other New York-based News Corp. units.

But there was a strand of truth to the rumor in that News Corp. isn't planning a party for everyone at the midtown Hilton as it has in recent years. According to a well-placed source, however, the reason for that is logistical: With the addition of 4,000 or so Dow Jones & Co. employees, the company has simply grown too large for the venue. This year, therefore, the party budget will devolve to the individual business units to do as they see fit. (A News Corp. spokeswoman confirms all this.)