Murdoch Says News Corp. Has '50-50' Chance of Getting DirecTV

ADELAIDE, Australia -- News Corp. Chairman Rupert Murdoch said Thursday the global media company has a "50-50" chance of buying DirecTV. The response came after being asked at News Corp.'s (NWS) annual meeting about the company's changed to acquire General Motors Corp. (GM) unit Hughes Electronics Corp. (GMH), whose operations include the coveted U.S. home-satellite provider. Mr. Murdoch said News Corp. still wants to weave DirecTV into its Sky Global cable and satellite operations, but added that now isn't the time to take the business public. An intial public offering could be discussed again "when things return to normal." The company's rival for DirecTV, Echostar Communications Corp. (DISH), has potential regulatory problems in acquiring Hughes, and Mr. Murdoch said the News Corp. offer will give shareholders exposure to a global operation. "The prospects would be infinitely greater," he added. During his prepared remarks, Mr. Murdoch described the talks with GM as "friendly and useful discussions," but that it would be incorrect to say there was any deal yet. On other topics, he said News Corp.'s U.S. television costs and advertising revenue have been affected by last month's terrorist attacks in the U.S. Mr. Murdoch noted that the immediate impact "cost us at least $100 million," with advertising bookings in the succeeding two weeks "pretty non-extistent." But he added that more recently, there have been "strong rays of sunshine appearing," with revenue bookings the past week for television stations and the Fox network being stronger than they have been for the past several months. Meanwhile, Mr. Murdoch said News Corp.'s U.K. newspaper operations are "doing very well, circulations are magnificent." He added the segment's results grew 10% in local-currency terms for the year ended June 30, and while the company has budgeted for a repeat performance in the current fiscal year, "I think it will be much flatter than that." A flat result is also expected from News Corp.'s Australian newspapers. Mr. Murdoch said the Hollywood film unit has had "a great start to the year," with two strong films issued so far and no expensive films in the pipeline. But he noted, "There is no room for any big disasters." He went on to say the FX cable network in the U.S. is "doing very well" and should generate a fiscal-year profit of more than $100 million. Going forward, Mr. Murdoch said that given News Corp.'s cash reserves, the company is "better placed" than its competitors ahead of what probably will be a period of industry consolidation. "We are very confident that we are well placed," he added. Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved

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Murdoch Says News Corp. Has '50-50' Chance of Getting DirecTV

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