>> i was appalled to find out what had happened. next on the second look, how much did he know and when did he know it. rupert faces questions over hacking and bribery allegations. the man at the center of a

media institution and now the the middle of a scandal. good evening this is second look, i'm julie haener. the recently resigned and arrested ceo of murdoch's british operations, reporter allen turnock tells us more about the man who is in the middle of a media giant under fire. >> reporter: murdoch's biggest love has been the newspaper business say those who knew him. he demanded dramatic story, telling his reporters we will never be boring. and checks in with his editors. >> he's passionate about his newspapers. along with that passion comes an involvement in the day-to- day operations of his papers. particularly his biggest ones. >> reporter: murdoch's

ambitions began in his native australia, inheriting his father's newspaper business. even started the australian a nationwide paper and aggressively used them to support politicians he favored. news of the world followed by desant both of which he pushed to a new level of sensationism. >> topples girls on page six became a murdoch creation. >> reporter: he was as tough as his headlines. >> he was the man who became the print unions. >> reporter: checkbook journalism, paying for stories was a regular practice that paid paid dividends. >> he ran close to journalistic

ethics. i'm not saying he broke the law or did anything illegal, but i will say he is aggressive in getting stories. >> reporter: margaret thacher, blare all rose to prime minister. >> he more than anybody i've ever seen in my lifetime in the media understood how you could use the power of the media to shape the political views of the country and in doing so to affect elections. >> reporter: and to help his business ambitions. murdoch did the same in the u.s. >> now we're moving very fast to have a worldwide platform. >> reporter: all together have expanded his political influence. his decades of brilliant business and political success make this week's collapse all

the more shocking. britain's normally devisive political power all behind him. >> could there be more on the way? including some close to rupert murdoch himself? bryan todd reports. >> reporter: arrested, questioned for nine hours then released, rebecca brooks could play a key role. she was the fire wall between the public's fury and murdoch's family. now that she's an exmurdoch employee. >> can rebecca brooks bring someone else down. >> it's hard to see brooks having any interest in bringing anyone else down. she will fight very hard to clear her name. >> reporter: sarah smith says that's because brooks still values her ties to the murdochs

or may have an eye on a editor job elsewhere. he won't comment on reports that she has several million dollars coming in severance pay. the list of casualties appears to be inching closer to the powerful ruling family. paul stevenson and john yates have resigned over their handling of the scandal. there was eddy colson out as prime minister david cameron spokesman this year, arrested earlier this month. last hint in chief checktive of dow jones and publisher of the wall street journal is gone. news of the world has been shut down. many observers say john murdoch, is on the firing line. it may come down to where else james murdoch's prints can be found. >> james murdoch has made it clear he paid off a huge amount of money to gordon taylor who

was a trade unionist who had his phone hacked. james has made it clear that he regards that as an error on his part and he much regrets it. >> reporter: if it's found that james murdoch knew more, smith says shareholders, board members may force his father's hand. >> if they were to really demand that james no longer be the heir, that he change the way the company is structured. he would have to listen to them. >> reporter: there are other reports that independent board membersover newspaper corporation are going even further questioning whether a change of leadership is needed. in other words, replacing james murdoch all together. contacted by cnn, a member of that board called those reports total crap. some of the key players testified on tuesday before what is the british equivalent of a congressional hearing. among them rupert murdoch, his son james and rebecca brooks who resigned as head of the

british paper this month. >> reporter: members of the british parliament did not give rupert murdoch a chance for opening remarks but it didn't stop him from making statements. >> i would just like to say one sentence, this is the most humble day of my life. >> reporter: lawmakers honed in on what murdoch and his son james who also testified may have known about phone hacking accusations at his news of the world tabloid. including murder victims, politicians and celebrities. murdoch's answer, he had no knowledge of hacking or of cash settlements paid to hacking victims. >> do you accept that ultimately you are responsible for this whole fiasco? >> no. >> you are not responsible, who is responsible? >> the people that i trusted to run and then maybe the people they trusted. >> reporter: murdoch said the now closed tabloid was more than 1% of his news corporation that includes fox news and the

wall street journal. the commissioner and assistant commissioner resigned. someone commissioner asked murdoch if the hacking extended to the 9/11 victims. >> as far as we know the fbi haven't found any. >> reporter: police detained the man that tried to throw murdoch a plate of foam. when he was asked, have you considered resigning, he answered no. >> i think frankly i'm the best person to clean this up. still to come on a second look, the second beginnings of what is now the mayor entertainment network. and the role murdoch played to making it survive and thrive. and a bit later, murdoch's connection to o.j. simpson.

it has been 23 years since

rupert murdoch made one of his many important moves. it is called fox, it has in times dominated the ratings. but in the beginning it wasn't clear if it was even going to survive. in 1992, seven years after fox started, ktvu's randy shandobil brought us a report with rupert murdoch. >> reporter: the hollywood establishment is being attacked from down under. cbs, nbc and abc had a basic strangle hold on prime time, australian media magnet rupert murdoch used his movie studio

21st century fox as a launching pad for his network. the first show was late night with joan rivers. other shows didn't draw well either, and then fox executives lost rivers' replacement in a contract dispute. many assumed murdoch would take up his signs and leave. >> nothing was working at all. not even married with children. i told him he could lose millions before he would turn the corner, he said if that's what it would take, that's what it would take. >> reporter: they knew he had the money. the question was, murdoch's

perseverance and his taste. he has perpetually ridiculed for his headlines and bare boosms. for example married with children makes many people gag, but it has allowed fox to stretch from the two nights to six and soon to be seven. >> i will defend anything if it's funny enough, i must say. i think that's the real test. people have been watching let's say 60 minutes for 20 years and very satisfied with it. it's a magnificent show. they're not going to go experimenting watching other programs at that time. so we have a bit, but if you're young, if you're under 30 you are indeed. you are more restless. >> reporter: and fox president kelner says there's more money to be made by attracting young audiences. people in their 20s don't have as much money as people in

their 30s, 40s and 50s. but the young spend more on newly advertised products. still other fox shows such as babes which joked about fat women, even embarrassed fox executives. murdoch admits to being uneasy with studs, and current affair which fox produces for other broadcasters. still he says he ignores media critics. >> we are dealing with broadcasting, we're not narrow casting. we're deemed to the whole public. that is not an elite taste. and people who would like to write in self-important newspapers, tend to come from an elite group of high college education. >> reporter: almost all of fox shows appeal to people in their teens and 20s including it's newest melrose place.

advertisers pay more to reach young unimpressionable audiences. but some wonder if murdoch would have wanted to target his peers. >> am i worried if i would appeal to my friends, i would be worries if i would appeal to them. >> why would you be worried? >> because they tend to be, pretty eliters. >> reporter: murdoch doesn't need friends who respect his taste, he knows enough people who respect his money and power. when we come back, on a second look. the public outcry that derailed o.j. simpson's book if i did it and its connection to murdoch. and william randolph i.

the rupert murdoch enterprise includes publishing. but the public outcry was so great, both were shelved. ken wayne brought us this report. >> reporter: the public outrage was quick and furious after it was announced that two tv specials and a book of how o.j. simpson would have carried out his wife's murder. >> everybody took a real stand against this and i'm glad that the news corp. made a decision that protects victim's rights. >> reporter: at least a dozen fox stations had already refused to air the program

following criticism that simpson and the network were making money out of a blood crime. >> it took the country, outraged people all over this country yelling and screaming and telling fox, telling reagan books this is disgusting. and they finally got the message. in san francisco, where simpson played football for galliello high and college, people said they are glad the deal was shelved. >> i think that's fab louis. fabulous. and whoever thought it up should be put in a hospital

themselves. >> i think simpson is a kind of person who will seek the limelight again. there'll be others. >> reporter: the few copies of the book that were shipped will be recalled and destroyed. as for simpson, there are already reports he received $3.5 million. in 1994, murdoch's news corp. was involved in another book controversy. this one surrounding the deal with the man who was about to become speaker of the house newt gingrich. gingrich said he underestimated the reaction to the size of the advance. >> we're about to have the first republican congress in 40 years. and i did not want to walk in next wednesday, and give the bitter defenders of the old order something they could run around and yell about. >> reporter: gingrich aids defended their boss showing off

a display of books including over republican leaders including al gore. one republican leader did not see the connection. >> the difference between mr. gingrich book deal, is that mr. gingrich was going to take an unprecedented $4.5 million from a man who has a direct interest in federal legislation and who has a case pending before the communication committee. >> reporter: among those expressing concern was then senate republican leader bob dole. when we come back, remembering another media empire by a man who also built himself a castle. william randolph dorf. i tell ya, i work a long day, every day.

i hang my head out the window. oh man, we're delivering everything you can think of: plywood, cement. i, i enjoy the breeze on my tongue. well uh, and every weekend, seems like we're headin' down to the lake. we're pullin' a boat or somethin'. i don't know why. i just do. it's not a problem. i don't mind as long as we always stop at chevron and get that techron stuff. my ears flop around too. check it out. [ male announcer ] your car takes care of you, care for it. chevron with techron. care for your car. it's hard work; i need a nap.

rupert murdoch is a powerful man. he runs a media empire and by all accounts has political influence in both britain and the united states. and in many ways, he is not

unlike another media mogul who got his start in san francisco a century earlier. william randall hurst. george watson brought us this story about hurst and his empire. >> he was born before the battle of getty sburg. he founded a publishing empire that was legendary in its inattention to truth and it's ability to manipulate the american public. he was married and the father of five sons, even though married he flaunted a public affair with a movie star for 36 years. this giant billboard of a man would influence presidential politics for the first half of the century. he was throughout his life reviled and honored as he led his country men on a roller

coaster ride of emotions. william randall hurst would be the citizen that would become king. if you were hurst you would support candidates and be reelected three times. you would be the one who started a war and then started three others. in the worlds of hurst you would make a paper for the nicest kind of people. don't print a bunch of dull stuff, for 64 years he was true to his word. hurst editorial staff wanted people to say geewhiz on the

first page. convincing the country that revolution in cuba was worth american intervention. his most important line, you provide the picture, i will provide the war. like him or not the country was dealing with a giant of a man. not the mention a newspaper man who had an opinion on everything. >> this whole system of income taxation has degenerated into a racket. >> reporter: there were many critics who felt hurst dealt more with make believe. but hurst had make belief as well. he became a film maker. he wanted to be the lord of hollywood. and he wanted to make his mistress of 30 years marianne davis a star. he fell just short in both cases. together hurst and davies would become one of the most famous

couples in the world and took center stage. the fabulous castle hurst built in his enchanted hill on his california ranch. in hollywood, status could be established by an invitation to spend a weekend at the ranch. the usually dour hurst seemed to turn alive during these moments at the castle. marianne would sparkle, and people could be a at awe in the man who built it. >> he was opposite of the picture that was painted of him. kind, fun loving, and he was kind of a gentleman who would always take care of his employees. if they got sick or injured on the job, he would make sure that all their hospital bills and their doctor's bills were paid. the same went for the members

of the families. >> all this took money, lots of it. and to get what he wanted, hurst had to go through two fortune, his own and his father. hurst got his money and he used it to build his ultimate end, power for william hurst. he had the power but never the presidency. he had the glitter of hollywood around him but never became the king of hollywood. he was passionately loved and just as passionately hated. time magazine once wrote of william randall hurst, no one else press ever matched the hurst press for flamboyant.

>> that's it for this week's second look. i'm julie haener, thank you for watching.