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Copyright © 2006 The Peninsula
HEADLINE: Media moguls in multi-billion dollar
poker
game: Analysts
Body:
Australia’s media moguls have made their first
bets in a multi-billion dollar poker
game where power, profits and press diversity are at stake
under liberalised ownership laws, analysts said yesterday.
Global political power-broker Rupert Murdoch and his News Corp
have bought chips. So have Australia’s richest man James
Packer and television baron Kerry Stokes.
They are waiting for the game
to start in earnest when the government’s new media laws,
passed by parliament last week, come into effect and allow an
expected wave of takeovers, mergers and foreign investment.
“There is a very large poker
game going on where large players have put themselves in a position
to do some acquiring and be part of the process of deciding who
else does any acquiring,” said media analyst Jock Given.
The swift moves by the moguls have led critics to reinforce their
warnings that the result of the new laws — expected to come
into effect early next year — would be a further consolidation
of media ownership in the hands of a few. “If that’s
what ends up occuring I think it does concentrate political power
to a very worrying extent,” Given said.
The biggest play so far has been Packer’s A$4.5bn ($3.4bn)
sale of half the media assets of his Publishing and Broadcasting
Ltd (PBL) to a Hong Kong-based private equity firm.
Packer, who holds major television and magazine assets, is believed
to be positioning the spin-off PBL Media to expand into newspapers.
Under the old laws this would not have been possible, but the
new legislation allows a company to own two instead of just one
out of three media — television, radio and newspapers —
in any single market.
Industry analysts say a prime target for Packer is Fairfax newspapers,
publisher of the Sydney Morning Herald, The Age in Melbourne and
the Australian Financial Review.
But Rupert Murdoch’s News Corp on Friday said it had bought
a strategic $276m 7.5 per cent stake in Fairfax, the main rival
to its own stable of metropolitan newspapers.
“It’s just a strategic holding. We don’t have
any particular plans for it — certainly no plans to take
over Fairfax,” Murdoch told a News Corp shareholders meeting
in New York.
Murdoch is seen as more likely to be interested in moving into
television, but he has critised the new laws as protecting the
current free-to-air channels, which he said would be “expensive”
to buy.
News Corp owns a powerful international stable of 175 newspapers,
including The Times of London, The Sun tabloid in Britain, the
New York Post and The Australian as well as cable television network
Fox and satellite broadcasters DirecTV and BSkyB.
Fairfax newspapers are seen as more “left-liberal”
and critical of the government of Prime Minister John Howard than
Murdoch’s more conservative stable, but even a takeover
by Packer could change that.
“The Fairfax papers would struggle to maintain the kind
of editorial position they have at the moment under Packer’s
ownership,” Given said.
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