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

Brutality Eroding IS Financial Support

Director of National Intelligence James Clapper says IS's penchant for publicizing beheadings, other brutal forms of punishment hurts group’s bottom line More

Studies: Climate Change a Factor in Disasters in Syria, California

Studies point to possibility of clear and present dangers from a threat often considered to be far in the future More

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials and human rights organizations assert that Pakistani authorities are using deadly attack at school in Peshawar as pretext to push out Afghan refugees More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Kerry Seeks Assurances of Russian Non-Interference in Ukrainei
X
March 03, 2015 3:11 AM
U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.
Video

Video Kerry Seeks Assurances of Russian Non-Interference in Ukraine

U.S. Secretary of State John Kerry has told his Russian counterpart, Sergei Lavrov, that his country could face further consequences to what he called its “already strained economy” if Moscow does not fully comply with a cease-fire in Ukraine. The two met, on Monday, on the sidelines of a U.N. Human Rights Council meeting in Geneva, where Kerry outlined human rights violations in Russian-annexed Crimea and eastern Ukraine. VOA State Department correspondent Pam Dockins reports from Geneva.
Video

Video Smartphones May Help in Diagnosing HIV

Diagnosing infections such as HIV requires expensive clinical tests, making the procedure too costly for many poor patients or those living in remote areas. But a new technology called lab-on-a-chip may make the tests more accessible to many. VOA’s George Putic reports.
Video

Video Afghan Refugees Complain of Harassment in Pakistan

Afghan officials have expressed concern over reports of a crackdown on Afghan refugees in Pakistan following the Peshawar school attack in December. Reports of mass arrests and police harassment coupled with fear of an uncertain future are making life difficult for a population that fled its homeland to escape war. VOA’s Ayesha Tanzeem reports from Islamabad.
Video

Video Ukrainian Volunteers Prepare to Defend Mariupol

Despite the ongoing ceasefire in Ukraine, soldiers in the city of Mariupol fear that pro-Russian separatists may be getting ready to attack. The separatists must take or encircle the city if they wish to gain land access to Crimea, which was annexed by Russia early last year. But Ukrainian forces, many of them volunteers, say they are determined to defend it. Patrick Wells reports from Mariupol.
Video

Video Moscow Restaurants Suffer in Bad Economy, Look for Opportunity

As low oil prices and Western sanctions force Russia's economy into recession, thousands of Moscow restaurants are expected to close their doors. Restaurant owners face rents tied to foreign currency, while rising food prices mean Russians are spending less when they dine out. One entrepreneur in Moscow has started a dinner kit delivery service for those who want to cook at home to save money but not skimp on quality. VOA's Daniel Schearf reports.
Video

Video US, Cuba Report Progress in Latest Talks to Restore Ties

The United States and Cuba say they have made progress in the second round of talks on restoring diplomatic relations more than 50 years after breaking off ties. Delegations from both sides met in Washington on Friday to work on opening embassies in Havana and Washington and iron out key obstacles to historic change. VOA’s Mary Alice Salinas reports from the State Department.
Video

Video Presidential Hopefuls Battle for Conservative Hearts and Minds

One after another, presumptive Republican presidential contenders auditioned for conservative support this week at the Conservative Political Action Conference held outside Washington. The rhetoric was tough as a large field of potential candidates tried to woo conservative support with red-meat attacks on President Barack Obama and Democrats in Congress. VOA Political Columnist Jim Malone takes a look.
Video

Video NYC's Restaurant Week: An Economic Boom in Fine Dining

New Yorkers take pride in setting world trends — in fashion, the arts and fine dining. The city’s famous biannual Restaurant Week plays a significant role in a booming tourism industry that sustains 359,000 jobs and generates $61 billion in yearly revenue. VOA's Ramon Taylor reports.
Video

Video Brookhaven at Cutting Edge of US Energy Research

Issues like the Keystone XL pipeline, fracking and instability in the Middle East are driving debate in the U.S. about making America energy independent. Recently, the American Energy Innovation Council urged Congress and the White House to make expanded energy research a priority. One beneficiary of increased energy spending would be the Brookhaven National Lab, where clean, renewable, efficient energy is the goal. VOA's Bernard Shusman reports.
Video

Video Southern US Cities Preserve Civil Rights Heritage to Boost Tourism

There has been a surge of interest in the American civil rights movement of the 1950s and '60s, thanks in part to the Hollywood motion picture "Selma." Five decades later, communities in the South are embracing the dark chapters of their past with hopes of luring tourism dollars. VOA's Chris Simkins reports.
Video

Video Deep Under Antarctic Ice Sheet, Life!

With the end of summer in the Southern hemisphere, the Antarctic research season is over. Scientists from Northern Illinois University are back in their laboratory after a 3-month expedition on the Ross Ice Shelf, the world’s largest floating ice sheet. As VOA’s Rosanne Skirble reports, they hope to find clues to explain the dynamics of the rapidly melting ice and its impact on sea level rise.
Video

Video Lao Dam Project Runs Into Opposition

A Lao dam project on a section of the Mekong River is drawing opposition from local fishermen, international environmental groups and neighboring countries. VOA's Say Mony visited the region to investigate the concerns. Colin Lovett narrates.

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.8954
JPY
USD
119.75
GBP
USD
0.6515
CAD
USD
1.2518
INR
USD
61.921

Rates may not be current.