Murdoch warns News Corp. could be swallowed up
news.excite.com
Murdoch warns News Corp. could be swallowed up
Updated 8:00 PM ET February 10, 2000
NEW YORK (Reuters) - Rupert Murdoch warned Thursday that his News Corp. media empire must unlock the value of its many assets quickly or else it will be swallowed up by a predator.
"I have to work harder than ever to have my values recognized by the market, so that we don't become a breakfast snack for these other big companies," Murdoch, the group's chairman and chief executive, said in an interview on the Fox News cable network, a News Corp. unit.
Known for its media brands such as Fox Broadcasting, Twentieth Century Fox, and the Los Angeles Dodgers, Murdoch says his company is under increasing pressure in the wake of the announcement of America Online Inc.'s planned acquisition of Time Warner Inc.
"The world has changed totally since the AOL/Time Warner takeover," Murdoch said. "A lot of us used to be big fish in a small pond, now we are all minnows there, with two huge sharks," he added in reference to AOL and software giant Microsoft Corp..
Asked if he would like to see News Corp. acquired, Murdoch said, "No. Absolutely not. I've spent my life on the company and I want to spend the rest of my life on this company."
However, he said he would clearly have a fiduciary duty to shareholders to consider any highly favorable offers.
Regarding reports that News Corp. may be a possible suitor for Seagram Co. Ltd.'s Universal entertainment arm, Murdoch said his company is not in "direct negotiations with anyone at all."
He dismissed a recent visit News Corp. executives made to Finnish telecom equipment maker Nokia as a learning exercise when asked whether a deal was being considered. Murdoch said he believed the future was in wireless communications.
In Sydney Thursday, News Corp., which has seen its market valuation soar about $20 billion since the surprise announcement of the AOL/Time Warner deal last month, reported a lower second quarter profit in line with forecasts.
In discussion with analysts, the company highlighted the many strides that News Corp. was making in New Media with strategic investments in associated companies, in order to position it in the developing digital world, whether it is television, satellite, broadband or handheld devices.
News Corp. American Depositary Receipts closed at 58-5/16 Thursday on Nasdaq, up 5/8 from Wednesday, but nearly double their price a year ago.
Murdoch, while insisting that the stock is "still very, very cheap," asserted that shareholders are beginning to see the value of various parts, including its satellite operations in Australia, Asia, Europe and Latin America.
"I think people suddenly realized what we have been working on for the last three years," he told Fox News. "We have built a series of platforms around the world which are growing very fast, and we are going to push them a lot faster."
Much of that under-appreciated value lies within its Asian satellite business STAR TV, and 40 percent owned British satellite group British Sky Broadcasting Group Plc , he said.
"If you take non-performing assets, in the sense that one day it could contribute earnings to us, such as Sky and Star, and put any sort of value on it, you would be buying $2 billion worth of cash flow in News Corp," he said.
News Corp is also seeking to maximize its efforts into the new media world, Murdoch said.
"We are looking at every section of our company to get it into this new media or digital age -- we have to," he said. "It will make us more profitable...and take us into a whole lot of new markets."
|
