Murdoch denies he knows anything. But the smoking gun in Michael Wolff's biography is that Rupert Murdoch himself gets on the story personally when he wants revenge. His defense that his company employs 53,000 people and he can't possibly know what vindictive reporters are doing on his behalf is pure bullshit:
When Wolff shows him at his desk, eagerly pursuing a news story, it’s not one in the broader public interest. Rather, Murdoch has heard a rumor that a Hillary Clinton aide he greatly dislikes may be a partner in an online pornography venture, and has set himself — and a New York Post reporter — to trying to confirm it at all costs; it’s a personal vendetta disguised as ‘news’.
http://frogenyozurt.com/2011/07/the-man-who-owns-the-news-inside-the-secret-world-of-rupert-murdoch-by-michael-wolff/
When Wolff shows him at his desk, eagerly pursuing a news story, it’s not one in the broader public interest. Rather, Murdoch has heard a rumor that a Hillary Clinton aide he greatly dislikes may be a partner in an online pornography venture, and has set himself — and a New York Post reporter — to trying to confirm it at all costs; it’s a personal vendetta disguised as ‘news’.
http://frogenyozurt.com/2011/07/the-man-who-owns-the-news-inside-the-secret-world-of-rupert-murdoch-by-michael-wolff/