Murdoch's Mint

MySpace seems like a cheap deal, now

February 9, 2007

2 Min Read
Murdoch's Mint

NEW YORK -- Yesterday at the Digital Hollywood Media Summit, News Corp. (NYSE: NWS) CEO Rupert Murdoch pitched his views on... well, just about everything.

What was interesting was Murdoch's apparently mastery of the digital space. He can sling the jargon of page impressions, MP3s, triple-play, and banner ads with the best of 'em. In fact, Murdoch now sounds like an Internet guy.

If you don't believe me, proof comes in the form of News Corp.'s stock price, which has taken off of late. Since creating a new Internet unit, buying and a couple of other properties in 2005, News Corp. has almost reinvented itself as an Internet company. I did a little investigation, and cooked up a chart, which is telling:

602.gifSo that $600 million deal for wasn't a bad deal after all. In fact, Murdoch said he even considers it a bargain. "The growth has exceeded our expectations," he said. He estimates that News Corp.'s revenue from its new online properties will hit $1 billion next year.

Some other Murdoch nuggets:

  • When asked about his sucession strategy, Murdoch said: "I want to live forever."

  • On Bill O'Reilly: "I think he gives both sides of the story."

  • On fund-raising for U.S. presidential hopeful Hillary Clinton: "Some people in the office wanted it, so I said, 'Fine, we'll do a breakfast.' "

  • On the film business: "I'm very optimistic. You go to an electronics show these days and there are more platforms, more and more ways to see movies. We just want to get paid."

  • On Borat: "I've seen it three times. I laughed like hell at it. I don't think it has destroyed our culture."

  • On YouTube's commercial strategy: "If you interrupt it with commercials, people will go someplace else pretty quickly."

  • On entering the Broadband market in the U.K., through BskyB: "The appeal of the triple-play, or quad play, is going to be hard to compete with. But we've already signed up more people than anybody else." (See BSkyB Gets Googly, BSkyB Unveils Strategy, and Murdoch's Sky Takes on BT).

    Is there anything left for the media mogul to master?

    — R. Scott Raynovich, Editor in Chief, Light Reading

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