Rupert Murdoch has ordered his media empire to slash expenditure on acquisitions ahead of the biggie to trump all previous NewsCorp deals – a potential $40 billion bid for satellite broadcaster DirecTV.
The shelving of new investments comes a month after the decision to freeze spending on IT and recruitment and less than a fortnight after the announcement of lay-offs among web staff [WAMN: 05-Jan-00]. Complained one senior executive: “The financial people are looking under every rock for money”.
The purchase of General Motors-owned DirecTV would represent the largest deal in the company’s history.
News source: Financial Times