Murdoch should certainly be stripped of his knighthood. He should never in the first place have been awarded it. Not only does his latest behaviour and that of his company and his son disqualify him, he has been an enemy of anything that passes for decency for years.
He loathes any hierarchy that does not have him or his son at the summit.
He hates the monarchy because he cannot himself inhabit/buy its position, either in Australia or elsewhere.
He failed, thank God, in assisting the subversion of the monarchy in Australia in 1999, when, despite loud voices from every corner of the media and chattering classes, the majority of the Australian electorate had the good sense to realise that he was trying to buy a future Australian presidency.
Murdoch's son James had the cheek at that time to suggest that the Queen was a "foreigner", when he had just abandoned Australian citizenship and taken out US citizenship (the Queen, of course, is not uniquely British - she happens to have been born in England but does not possess any passport, being a Sovereign, and is equally British, Canadian, Australia, New Zealander, Jamaican and the dozen plus realms of which she is sovereign).
HM the Queen has, even her most cynical opponents acknowledge, a keen sense of duty to each of these realms and to the Commonwealth as a whole.
Murdoch, in contrast, together with James, his unelected hereditary heir to News International, have loyalty to no one, no Queen and no country, none except money.