Murdoch plans summer launch of new financial channel
By Harry Berkowitz
Staff Writer
November 17, 2004
Rupert Murdoch said Tuesday he expects to launch his new Fox business channel next summer and that it will be easy to compete against CNBC.
"I think it's wide open for competition," Murdoch said of CNBC, talking to reporters after he presided over the Fox Entertainment Group annual meeting in Manhattan.
Meanwhile, Murdoch also called for John Malone, whose Liberty Media is increasing its voting stake in Murdoch's News Corp. from 9 percent to 17 percent, raising speculation over his intentions, to sign a standstill agreement.
Fox News Channel, which has topped CNN in ratings, has several business-oriented programs whose edgy, opinionated style gives clear indications what the cable business channel will look like.
Murdoch said it will offer "more positive programming." Although CNBC's ratings have dropped sharply since the stock market bubble burst, it is very profitable, attracting a prime audience for advertisers.
CNN said last month that in December it will shut CNNfn, which focuses on personal finance but never attracted a big audience.
"CNNfn was never a factor in our thinking at all," Murdoch said two weeks ago in announcing quarterly earnings. The launch of a Fox business channel could come soon after Murdoch unveils a new reality TV cable channel, which he expects to launch next spring.
Both channels should be helped by the fact that Fox controls DirecTV, the biggest satellite TV operator, which has been growing rapidly.
Murdoch yesterday predicted DirecTV will soar to 20 million subscribers within a few years, compared with the current 13.5 million. EchoStar communications has 10.5 million.
When asked whether he would support Malone remaining a large shareholder in News Corp., Murdoch said that would be fine, "if he signed a standstill." Murdoch said he will probably meet with Malone in a month or two to discuss "all sorts of possibilities."
One rumored possibility is for News Corp., which adopted an anti-takeover defense, to buy Liberty's 50-percent stake in Discovery Communications, which Murdoch called "a very fine asset," adding, however, that its split ownership is a drawback.
Also Tuesday, Saudi Prince Alwaleed bin Talal, who controls a 3 percent stake in News Corp. non-voting shares, said in a statement he has "utmost confidence in Mr. Murdoch, his management team and his succession plan," and "if necessary," will increase voting shares in support of Murdoch.
When asked his reaction to Malone's move, Murdoch said, "Shocked would be too strong a word." The two have had some "friendly conversations," Murdoch said, calling them "too vague" to report.
"It's just John negotiating," Murdoch said. "We know each other pretty well. It's fine."
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