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May 6, 2007
Friedman on Fox's CNBC-Killing Plans
Jon Friedman's latest column is more than a little breathless and intermittently fan-boy-ish about Rupert Murdoch's "stunning" bid for Dow Jones, but it also contains some penetrating comments directed at my sometime hang-out at CNBC. Agree or disagree, this is required media reading and will almost certainly be forwarded 'round and 'round the business-media business tomorrow.Rupert Murdoch's stunning $5 billion takeover bid for Dow Jones is the key to News Corp.'s strategy to topple CNBC in the potentially lucrative arena of business-news television.
Did I say "topple?" Excuse me. I meant "crush." (Obliterate is probably a tad strong but you get my drift.)
By making this unsolicited offer, News Corp.chief Murdoch proved -- again -- why he has a reputation as a global media master. Regardless of how observers view him and his media holdings in the U.S. or elsewhere, he understands the ever-changing media landscape better than anyone else. He adjusts to change. He thinks global. He thinks digital. Always, he thinks big.
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It doesn't seem *that* much of a stroke of genius.
I wouldn't be surprised if the $5 billion offer were to some extent fueled by the weak dollar, using News corp funds that were held in, say, UK pounds.
If that's the case, it'd be a no brainer - pay a premium for DJ, but have much of that premium come 'free' from favorable exchange rates.
>>> pay a premium for DJ, but have much of that premium come 'free' from favorable exchange rates.
The leverage afforded by changing currency rates applies also to any alternate use of that money, hardly free. Murdoch's "genius" is already well established and difficult to deny--though many try.
If Rupert doesn't get DJ the launch of the Fox Financial Channel will be a bit anti-climactic unless he can pull off something equally spectacular. What could that be?