FBN/Dow Jonse/CNBC: Murdoch speaks…
Variety’s Michael Learmonth writes about Rupert Murdoch’s first public comments since the Bancrofts agreed to let News Corp. acquire Dow Jones…
Since the day News Corp.’s $5 billion bid for Dow Jones was made public — by CNBC — the upcoming launch of Fox’s new business channel has been touted as the top strategic rationale for the deal.
But in his first public comments since the deal was approved by Dow Jones’ Bancroft family, Murdoch said he expects Fox Business Network to beat CNBC with or without an association with the Wall Street Journal.
CNBC parent GE has an exclusive content deal with Dow Jones that runs through 2012, and while Murdoch called that deal an “obstacle,” he told reporters that no talks are under way to buy GE out of it. “No, we’re not negotiating,” he said bluntly.
He said the deal is “all-encompassing as far as the brand is concerned,” including business news and access to Wall Street Journal reporters, but part of his strategy for the Journal is to expand its general news output to take on the New York Times and expand in Europe and Asia. “There are other ways we can associate ourselves with the brand,” he said.
As does the Hollywood Reporter’s Paul J. Gough and Georg Szalai…
The News Corp. CEO predicted that with Dow Jones’ help, FBN will surpass CNBC’s valuation “in short order” in the same way that Fox News Channel trampled eventually CNN and MSNBC. He cited analysts’ current valuations of CNBC at more than $4 billion.
News Corp. president and COO Peter Chernin estimated during the call that his conglomerate’s total FBN investment would be $150 million-$200 million and that the channel would break even within “a couple” of years.
FBN shares a headquarters and some staff with the high-flying Fox News Channel.
“Early plans, led by (FNC chief) Roger (Ailes) and his team, I think are really exciting,” Chernin said. He added that he is confident that his team will make FBN a “terrific differentiated product” — with or without Dow Jones.
“We’ll look at anything else that comes from Dow Jones as gravy,” he said.
And then there’s this from The New York Post’s Peter Lauria…
Murdoch also said the media’s harsh coverage of him during negotiations with the Bancroft family, which controls Dow Jones, almost squashed the deal.
“I spent the better part of the past three months enduring criticism normally leveled at a genocidal tyrant,” Murdoch said. “If I didn’t think [Dow Jones] was such a perfect fit - with such unlimited potential to grow on its own and in tandem with News Corp.’s assets - believe me, I would have walked away.”
I found this passage in the Variety article kinda funny:
“On Wednesday Fox biz news senior veep Neil Cavuto — who will become the face of the new channel — landed President Bush to talk about the home mortgage crisis. CNBC’s Maria Bartiromo had to settle for Treasury Secretary Henry Paulson.”
I don’t know about you, but I’d rather hear from Paulson instead of Bush, especially when it comes to the recent subprime issues and subsequent stock market reaction. Frankly I don’t think I want to hear from Bush, period…but that’s just me.
Comment by Anonymous — August 9, 2007 @ 9:39 am
quote: The News Corp. CEO predicted that with Dow Jones’ help, FBN will surpass CNBC’s valuation “in short order” in the same way that Fox News Channel trampled eventually CNN and MSNBC.
I agree! (I love the “in short order” part.)
Comment by Noelle — August 9, 2007 @ 9:50 am
That’s just muckraking…poking the stick in CNBC’s eye. It’s going to take some time…and I think Murdoch knows this.
Comment by Spud — August 9, 2007 @ 10:25 am
Whatever time it takes, it’s clear FBN will eventually beat CNBC. The pattern has been set. Expanded coverage of news will also deal a blow to the national edition of the NY Times, whose circulation has been steadily dipping. I would take Murdoch’s words seriously.
Comment by RGL — August 9, 2007 @ 10:31 am
Look its this simple. Before Fox came along 99.9% of all media in USA was controlled be democrats. Murdoch saw this and knew if he created a cable news channel that would tell the real truth he would win-he did.
Now he know 90% of newspapers are controlled by Democrats especially the NY Times.
Murdoch is gonna use the WS Journal to tell the real truth there just like he did with Fox and the NY Times days are numbered.
Comment by foxmeansbusiness — August 9, 2007 @ 10:57 am
I believe the statement “in short order” is correct. It’s not going to take a loooong time. It took FNC only 5 years to beat CNN by a landslide. The business shows on FNC already beat CNBC in the ratings by a landslide.
Comment by Noelle — August 9, 2007 @ 11:39 am
Anonymous: But if given her choice yesterday, I’m sure Maria would have picked the President over the Treasury Secretary.
Comment by Ira — August 9, 2007 @ 12:30 pm
Isn’t there anyway MSNBC and CNBC will dissolve and leave the airwaves for good, how long will they last even with the dismal ratings the garnish every day of every year?I mean GE should cut them off eventually.
Murdoch must concentrate on mopping MSNBC and CNBC once and for all after conquering the business news space.
Comment by Macjoubert — August 9, 2007 @ 2:41 pm
Macjoubert: With 6 million hours of programming scheduled, CNBC and MSNBC have to hang around at least through the 2008 Olympics.
Comment by Ira — August 9, 2007 @ 7:55 pm
I wish Fox would quit sitting on their hands and push FBN on basic cable. I totally do NOT watch CNN, CNBC, or MSNBC at all. If those channels were removed they would not be missed. FBN needs to be on basic cable lineup.
Comment by bob — October 10, 2010 @ 8:26 pm
I wish Fox would quit sitting on their hands and push FBN on basic cable. I totally do NOT watch CNN, CNBC, or MSNBC at all. If those channels were removed they would not be missed. FBN needs to be on basic cable lineup.
Comment by bob — October 10, 2010 @ 8:29 pm