NewsCorp Sticks to Satellite IPO Plan

05 April 2001

Australian-headquartered media giant NewsCorp has announced that it still intends to hold an IPO of its worldwide satellite business Sky Global Networks, whatever the result of the protracted negotiations with US satellite broadcaster DirecTV.

Deputy chief operating officer Lachlan Murdoch, son of Rupert, announced that a share offering would take place when the stock markets looked more favourable – “We obviously would not go out in today’s market,” he said. Commenting on NewsCorp’s $70 billion bid to buy DirecTV, he added that talks with Hughes Electronics – the General Motors subsidiary which houses the broadcaster – were “extraordinarily difficult”.

Murdoch also announced that NewsCorp would stand by its predictions for operating profits this year, despite concern among analysts over the impact on media groups of falling adspend. “We have achieved marginally better results in the third quarter, however it is too difficult to tell what the fourth quarter will bring,” he declared. “This is obviously not ideal but it is better than has been portrayed by lots of the financial media.”

News source: New York Times