Murdoch offers stakes to Microsoft and Yahoo!
By James Harding, Media Editor - 28 Feb 2000 22:51GMT
Financial Times
Rupert Murdoch is in talks with Microsoft and Yahoo! to offer both companies minority stakes in News Corporation's new digital satellite company.
The discussions to bring the world's largest software company and the number one internet portal into part of the News Corporation media group illustrate how Mr Murdoch is now seeking to join the trend to bring content and technology businesses together.
Mr Murdoch has had discussions with several other companies about participating in what News Corp's officials call Platco, the new $35bn company carved out of News Corp's satellite interests.
America Online, the US internet company that recently announced a merger with media giant Time Warner, has also been discussing participation in Platco.
But it is understood that Microsoft and Yahoo! are the two leading contenders to take stakes of up to 5 per cent in the company.
Mr Murdoch, speaking on the telephone on Monday, said the company had been considering establishing a separate satellite company, but the plans were pushed ahead with greater speed following the AOL-Time Warner merger. "There has been a greater sense of urgency [following the merger]," Mr Murdoch said. "We do not need to be equal to them in size, but we do need to maximise [the company's size]."
News Corporation estimates Platco, which includes satellite interests ranging from British Sky Broadcasting in the UK to Star TV in Asia, will be worth $35bn-$50bn when it is brought to market.
Yahoo!, which is the furthest advanced in its talks with News Corporation, is expected to pay for its multi-billion dollar share of News Corp's Platco through an exchange of minority stakes.
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