News / Economy

Media Magnate Murdoch Looking to Build His Empire

Rupert Murdoch, executive chairman of News Corporation, speaks during a panel discussion at the B20 meeting of company CEOs in Sydney, Australia, July 17, 2014.
Rupert Murdoch, executive chairman of News Corporation, speaks during a panel discussion at the B20 meeting of company CEOs in Sydney, Australia, July 17, 2014.
Ken Bredemeier

Worldwide media magnate Rupert Murdoch is on the hunt to add to his corporate empire in the United States, as American media companies seek assets to gain an advantage over competitors.

Murdoch already controls movie studio 21st Century Fox, the widely watched Fox television channels and a prominent business newspaper, The Wall Street Journal. But media rival, Time Warner, balked this week at Murdoch's $80 billion offer to take over its movie studio, the popular HBO and Turner cable entertainment ventures and CNN, a worldwide news channel.

Time Warner said it "was not in the best interests" of the company to accept the deal or talk about it further with Murdoch.

But business and legal analyst Erik Gordon at the University of Michigan told VOA that Murdoch was facing a rapidly changing media landscape that could push him to increase his offer in hopes Time Warner might change its mind.

He said the planned mergers of cable distributors -- Comcast with Time Warner Cable and AT&T with the DirecTV satellite company -- would give them an advantage in multi-billion-dollar negotiations with media content producers like Murdoch and Time Warner.

With that in mind, Gordon said Murdoch was forced to become bigger if he wanted more clout.

"So you get into one of these sort of arms races, where one side gets more power, and then the other side has to consolidate to rebalance that power.... He wants to be able to go to the negotiating table against the distributors and say, well, look, if you don't deal with me on terms that are acceptable to me, not only do you lose my present properties like Fox, but you also lose HBO and Cartoon Network and everything else I get by taking over Time Warner," he said.

The dean of the business school at Hofstra University in New York, Patrick Socci, told VOA that for Murdoch, the acquisition of Time Warner's movie production division, along with HBO and its widely watched television dramas, could be reason enough to increase his bid beyond the $85 a share of stock he offered.

"I think right now at $85, Murdoch will be able to swing the deal and he's scaring everybody away by saying he may even go higher if Time Warner will open its books. And I could see that investors would probably push to make that happen, just to see how much more they could get," said Socci.

Murdoch, who generally supports conservative political causes in the U.S., said he would sell CNN if he acquired Time Warner, to avoid a conflict with his Fox News channel, where conservative commentators pointedly voice their opposition to U.S. President Barack Obama and his policies.

Gordon said that beyond the fight between corporate titans like Murdoch and Time Warner, there were other major U.S. companies seeking to win over more customers for the media content they were producing.

"You have a lot of the newer, more start-up channels -- Netflix, Amazon, Google -- getting into the business. So you sort of have two tiers. You have the huge elephants fighting each other in one room, and then you have the littler, newer guys outside the room who'll probably be their competition in coming years," he said.

You May Like

For Lebanon-based Refugees, Desperation Fuels Perilous Passage

In a war that has caused an estimated three million people to flee Syria, efforts to make perilous sea journey in search of asylum expected to increase More

South African Brewer Tackles Climate Change

Mega-brewer SAB Miller sent delegates to climate summit in Peru, says it is one of many private companies taking their own steps to fight climate change More

Indonesia Reports Increase in Citizens Joining Islamic State

Officials say more than 350 of its citizens are now in Syria or Iraq to fight with Islamic State - 50 more than last month More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Will Pakistan School Shooting Galvanize Pakistan Against Extremism?i
X
Ayesha Tanzeem
December 17, 2014 11:54 AM
The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video Will Pakistan School Shooting Galvanize Pakistan Against Extremism?

The attack on a military school in Pakistan’s northwest city of Peshawar left 141 dead, including 132 children. Strong statements of condemnation poured in from across the world. The country announced three days of mourning, and the leadership, both political and military, promised retribution. VOA's Ayesha Tanzeem looks at how likely the Pakistani government is to clamp down on all extremist groups.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video Turkey's Authoritarianism Dismays Western Allies

The Turkish government has been defiant in the face of criticism at home and abroad for its raids targeting opposition media. The European Union on Monday expressed dismay after President Recep Tayyip Erdogan lashed out at Brussels for criticizing his government's action. Turkey's bid to be considered for EU membership has been on hold while critics accuse the NATO ally of increasingly authoritarian rule. Zlatica Hoke reports.
Video

Video US-China Year in Review: Hong Kong to Climate Change

The United States is pushing for a code of conduct to resolve territorial disputes in the South China Sea as it works to improve commercial ties with Beijing. VOA State Department correspondent Scott Stearns reports on a year of U.S. policy toward China from Hong Kong to climate change.
Video

Video Japanese Leader’s Election Win Raises Potential for Conflict with Neighbors

Japan’s Prime Minister Shinzo Abe and his allies easily won a two-thirds majority in parliament Sunday, even though the country has slipped into recession under his conservative policies. VOA’s Brian Padden reports from Seoul, that the prime minister’s victory will empower him to continue economic reforms but also pursue a nationalist agenda that will likely increase tensions with Japan’s neighbors.
Video

Video Nuba Mountain Families Hide in Caves to Escape Aerial Bombings

Despite ongoing peace talks between Sudan's government and the rebel Sudan People’s Liberation Movement-North, or SPLM-N, daily aerial attacks continue in South Kordofan province’s Nuba Mountains. Adam Bailes was there and reports for VOA that government forces are targeting civilian areas, rather than military positions, with their daily bombardments.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8033
JPY
USD
117.19
GBP
USD
0.6372
CAD
USD
1.1634
INR
USD
63.622

Rates may not be current.