Murdoch Morose over Global Prospects

14 July 2008

SUN VALLEY, Idaho: The annual technology and mediafest has heard stark warnings from News Corporation boss Rupert Murdoch (pictured) of further "bad shocks" in store for the global economy and claims that he is tightening his deal-making belt.

He told the Allen & Co conference - organised by entertainment industry investment banker Herbert Allen – it was "very unlikely" there would be a NewsCorp tie-up with ailing internet pioneer Yahoo, despite speculation after the latter's rejection of a $47.5 billion (€30bn; £24bn) offer from Microsoft.

Murdoch was also pessimistic about the global outlook, predicting: "I think there's more [bad news] to come and it'll take a year to shake out" - meaning no let-up in 2009. 

"There are a lot more bad shocks coming. More lowering of values, companies selling assets."

The mogul also opined that Europe, which is already starting to feel the effects of the economic slump, would be hurt further in another six months.

Despite protestations that he was not at Sun Valley to make deals, the economic squeeze may in fact prompt Murdoch to buy up assets as media sector companies look to cut costs.

His own NewsCorp empire has seen its stock value slide by around 30% since the beginning of the year.

Data sourced from; additional content by WARC staff