Believe it or not, News Corp. (NYSE: NWS) Chief Executive Rupert Murdoch does sometimes deliver for shareholders.

Shares of the parent company of 20th Century Fox are down about 2% this year, which while lousy, actually is significantly better than other media conglomerates including Walt Disney Co. (NYSE: DIS), Time Warner Inc. (NYSE: TWX), and Viacom Inc. (NYSE: VIA), which each are down much more. The attraction here isn't shareholder value. It's Murdoch.

Quite simply, the Australian media tycoon is the most dynamic CEO in the industry. He's one of the few who does stuff stuff just because he feels like doing it. Just because the market really doesn't need another cable news business channel, that doesn't mean that Murdoch won't start one. Fox Business Network isn't going to make a nickel for years and won't do much for shareholders. The same goes for Dow Jones & Co. (NYSE: DJ). Spending $5 billion for the publisher of the Wall Street Journal may be a slight help to the bottom line, though its potential may not be realized for years either.

What makes Murdoch tick is lust for power and influence. He started Fox Business Network because he thought that CNBC wasn't pro business enough, a sentiment that probably shocked the likes of Larry Kudlow and Jim Cramer. Advertisers are no doubt getting commercial time on Fox Business for a fraction of what they would pay on CNBC or Bloomberg TV. The question is whether they'll be interested in the network once its novelty begins to wear off.

As for the Journal, worries about Murdoch interfering with the newspaper are overblown. He doesn't have to ring up an editor to tell him about a story he hates. A high-level Murdoch employee knows very well what the mogul likes and doesn't like and will comport himself accordingly.

Be sure to check out more Money Winners of 2007.

Money Winners of 2007: Rupert Murdoch wins again originally appeared on BloggingStocks on Sat, 15 Dec 2007 09:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal's "Deal Journal" reported that Sam Zell's planned buyout of Tribune Company (NYSE: TRB) is contingent on the receipt of a solvency opinion, and that this is the first time they have ever seen a deal dependant on this.
• The WSJ's "Heard on the Street" reported that Countrywide Financial Corporation (NYSE: CFC) may not be out of the woods yet. Despite executives promising a return to profitability, there is still a risk the company may eventually seek bankruptcy protection or "resort to huge sales" of new stock.
• U.S. private equity group JC Flowers "is understood" to have walked away from the auction for troubled bank Northern Rock, the Financial Times reported.
• Rupert Murdoch is shaking up the management of News Corp (NYSE: NWS.A), the Financial Times reported, giving his son, James Murdoch, control over the company's European and Asian operations, and appointing two trusted executives to lead Dow Jones & Company Inc (NYSE: DJ) and the Wall Street Journal.

• Barron's Online's "Weekly Trader" said AutoNation Inc (NYSE: AN) looks attractive now, despite hovering near a multi-year low. The company has also been on a slow but steady quest to diversify away from unpopular domestic brands by snapping up luxury and import dealerships.

Newspaper wrap-up: Tribune buyout contingent on solvency opinion originally appeared on BloggingStocks on Fri, 07 Dec 2007 08:05:00 EST. Please see our terms for use of feeds.

Out with the old: Rupert Murdoch poised to take over at Dow Jones originally appeared on BloggingStocks on Thu, 06 Dec 2007 17:39:00 EST. Please see our terms for use of feeds.

This post was part of AOL Money & Finance's Best & Worst of 2007. Voting has now closed and readers have chosen JetBlue's blunder as the dumbest business moment of the year. Let us know in the comments if you are pleased with this result.

So many dumb moments in business in 2007, so little space. This year had everything from the torturous dance between Rupert Murdoch's News Corp. (NYSE: NWS) and the Bancroft family over the future of Dow Jones & Co. (NYSE: DJ) to the almost weekly Chinese toy recalls to the collapse of the subprime mortgage markets. Let's not forget the JetBlue Airways Corp. (NASDAQ: JBLU) Valentine's Day Massacre that left thousands stranded on airport runways for hours during a snowstorm, or Whole Foods Market Inc. (NASDAQ: WFMI) Chief Executive John Mackey's anonymous chatroom postings about his company on message boards.

Sure, those stories may have been gloriously idiotic in their own way, but none of them had anything to do with a wacky cartoon featuring a talking milk shake, order of fries, and wad of meat.

If the stars of the "The Aqua Teen Hunger Force" don't ring a bell with you, don't feel bad because they didn't ring a bell with the Boston Police Department either. For those who've never heard of the show, the Aqua Teens are the obnoxious "Master Shake," the cerebral "Frylock," and the dimwitted "Meatwad." Originally, they were supposed to be some sort of detectives. Most shows, though, they just hang out in their dilapidated house and torment their ultra-hairy neighbor named Carl. Among the minor characters are two slacker aliens called the Moonites who look like they dropped out of a video game from the 1980s.

Continue reading Best & Worst of 2007: Dumbest moments in business

Best & Worst of 2007: Dumbest moments in business originally appeared on BloggingStocks on Sun, 02 Dec 2007 14:10:00 EST. Please see our terms for use of feeds.

Dow Jones seeks to unload Ottaway newspaper chain originally appeared on BloggingStocks on Tue, 27 Nov 2007 15:10:00 EST. Please see our terms for use of feeds.

Dow Jones executives clash with Murdoch over WSJ Online originally appeared on BloggingStocks on Mon, 19 Nov 2007 19:15:00 EST. Please see our terms for use of feeds.

Rupert Murdoch mulled offer for the New York Times originally appeared on BloggingStocks on Thu, 15 Nov 2007 19:04:00 EST. Please see our terms for use of feeds.

Rupert Murdoch plans free Wall Street Journal online originally appeared on BloggingStocks on Tue, 13 Nov 2007 14:31:00 EST. Please see our terms for use of feeds.

Time Warner, down 18% this year, trades, at a multiple of 18. Disney, whose shares are little changed, is trading a forward price-to-earnings ratio of 17. News Corp., also little changed, is the most richly valued of the bunch with a forward p/e of 20. All three of them report earnings this week. To put it diplomatically, expectations are low. Disney is probably the most compelling value there because of strong brands and top-flight management.

Revenue at Time Warner is expected to be $1.41 billion, up 14.8% according to analysts surveyed by Thomson Financial. Earnings are expected to be 11 cents compared with 19 cents a year earlier. The stock rose today after the company announced that Jeff Bewkes would replace Richard Parsons as CEO starting next year. Don't expect any big changes at AOL, though. The strategy to turn around the Internet unit was developed by Bewkes. The company will come under pressure to divest AOL and other businesses including publishing. Earnings are due Wednesday.

Disney reports Thursday. Analysts aren't expecting much out of the Mouse House. Revenue is expected to inch up 2.2% to $8.98 billion. Earnings are expected at 41 cents versus 36 cents a year earlier. With the record-low dollar, the company's Theme Parks are dirt-cheap for foreign tourists. Earnings also should be helped by the "High School Musical" franchise and a solid performance by the ABC Television network.

There will be plenty of talk about the acquisition of Dow Jones & Co. (NYSE: DJ) on Thursday's News Corp. earnings conference call. There will also be discussion about the surging popularity of Facebook. Though so far the Fox Business Network has underwhelmed critics, Murdoch will no doubt put a positive spin on the channel's debut. Revenue for the quarter is expected to increase 9.6% to $6.48 billion. Earnings are pegged at 23 cents versus 19 cents a year earlier.

Time to buy media stocks? originally appeared on BloggingStocks on Mon, 05 Nov 2007 18:29:00 EST. Please see our terms for use of feeds.

Dow Jones pulls CNBC ads for FOX Business Network debut originally appeared on BloggingStocks on Tue, 16 Oct 2007 11:58:00 EST. Please see our terms for use of feeds.

Michael Copps, a member of the FCC, said that the tests for some upcoming mergers should be set higher. Two deals over which he showed special concern were the Sirius (NASDAQ: SIRI) merger with XM (NASDAQ: XMSR) and the News Corp (NYSE: NWS) purchase of Dow Jones (NYSE: DJ).

Mr Copps' worries about Dow Jones are simple enough. He is troubled that Mr. Murdoch will have such a large concentration of media in New York

He shows even more interest in the Sirius plan. The Wall Street Journal writes that "as one of five FCC commissioners, Mr. Copps will cast a vote on whether the Sirius-XM merger and Tribune sale should be allowed to proceed." Copps may want the satellite radio companies to give more guarantees on prices charged to consumers.

XM and Sirius stocks have both moved off lows as it appeared that approval for their merger looks more certain. The stocks are sill severely depressed. Copps comments may help push them down again.

While the satellite radio company merger may face more opposition than was anticipated recently, the firms still have a compelling argument about how competitive the marketplace is. They continue to lose money and, without some change in their structures, their debt loads could sink them. Perhaps someone will point that out to Copps.

Douglas A. McIntyre is a partner at 24/7 Wall St.

FCC comments cast doubt on Sirius (SIRI) merger with XM, Dow Jones deal originally appeared on BloggingStocks on Fri, 28 Sep 2007 06:14:00 EST. Please see our terms for use of feeds.

Are big-time newspapers going to survive the instant news rush and immediate availability of the internet?

That question gets bandied around so much every day that some tennis balls would be jealous. But, just like other businesses that continue to be upended by the freedom of the internet, newspapers seem particularly vulnerable. The New York Times is losing readers, other big papers hide content behind "paid access" models on their own websites when anyone can get local and national news on laptops, cellphone screens and any other net-connected device, most often for free.

What do newspapers have left to contribute? A lot, actually -- but not morphing with the times is going to be the downfall of many of them. Newspapers will have to give their content away for free to survive (say some), and in return for losing that revenue, they'll have to get with it in terms of online advertising. Ask Google (NASDAQ: GOOG) about this, as the company owns a billion-dollar empire based on that very principle.

As subscribers (paid ones, mind you) leave in droves, what's to become of many newspaper publishers that rehash the same AP wire stories, mix in local color and commentary and pass off this combo to increasingly leery customers? Some will go the way of the dinosaur unless change is made, as in now. Others, like the Washington Post and The Wall Street Journal, will most likely figure out how to strike a fine balance of excellent, journalistic content and advertising support behind that content.

For others, what value is left to add to the newspaper business that the internet (like Google News) can't destroy? That's the billion-dollar question for the next decade or so. The days of loading up on wire stories while eliminating local, original content to save money are over, and smart publishers knew it years ago. The ones battling with that concept now are already in a world of hurt. Some don't even know it.

Too many newspapers and not enough readers shaking up publishers originally appeared on BloggingStocks on Mon, 24 Sep 2007 15:32:00 EST. Please see our terms for use of feeds.

The Associated Press reports that News Corp.'s (NYSE: NWS) Fox News Network plans to launch Fox Business Network (FBN) to compete with General Electric's (NYSE: GE) NBC Universal's CNBC on October 15. Will the two really compete? CNBC targets upscale investors while FBN says it's targeting Main Street.

One interesting detail in this article is that Dow Jones & Company's (NYSE: DJ) arrangement with CNBC -- giving it exclusive access to the Wall Street Journal until 2012 -- only covers business-related news. This allows FBN to use Journal coverage of other areas such as Washington and lifestyle topics.

I think CNBC will feel threatened by FBN and continue to respond by offering conservative-leaning and big-business-boosterish coverage. Meanwhile FBN will use its well-practiced brand of Amen Chorus stories that both demonize the enemy -- in this case CNBC -- while appearing to support the voiceless, powerless little guy. If I ran CNBC, I would focus primarily on giving my core audience more of what it wants and not try to imitate FBN through patriotic-sounding stories.

Advertisers will pay a premium to access CNBC's upscale viewers and GE cannot afford to lose those dollars.

Peter Cohan is president of Peter S. Cohan & Associates,. He also teaches management at Babson College and edits The Cohan Letter. He owns GE stock, has consulted to News Corp.'s CEO, has appeared as a guest on CNBC and Forbes on Fox, and has no financial interest in Dow Jones.

Fox Business Network faces off against CNBC originally appeared on BloggingStocks on Wed, 19 Sep 2007 14:05:00 EST. Please see our terms for use of feeds.

Rupert Murdoch all but said that he would take his new prize, The Wall Street Journal, and offer it online for free, even though he would be giving up almost one million paid online subscribers and about $50 million in revenue.

Murdoch is probably looking at the nearly $400 million that The New York Times (NYSE: NYT) says it will do through its online editions this year. According to Nielsen Net/Ratings, nytimes.com has more than 13 million unique visitors. WSJ.com has closer to 5 million.

Murdoch has hinted that he will add reporting on national and international news to the Journal's financial coverage. That would give him the opportunity to do real damage to the Times and potentially go after much of its consumer advertising revenue base. With internet advertising revenue at newspaper sites still rising at close to 20% a year, Murdoch is after a pot of money that The New York Times Company must know will be close to $750 million three years from now.

Continue reading A free online Wall Street Journal?

A free online Wall Street Journal? originally appeared on BloggingStocks on Wed, 19 Sep 2007 12:50:00 EST. Please see our terms for use of feeds.

The main union representing newsroom employees at Dow Jones & Co. (NYSE: DJ) better hope it can settle its contract dispute with the publisher of the Wall Street Journal before Rupert Murdoch completes his $5 billion acquisition of the company.

Dow Jones is taking a tough line with the 2,000-member Independent Association of Publishers' Employees (IAPE), making it a final offer of a three-year contract with 3% raises in each year with sharply higher health care costs, according to Editor & Publisher. Members of the union may call for a strike vote as soon as this weekend, the publication said.

This dispute comes as the Australian tycoon is trying to make nice with the editorial staff at the Journal, personally trying to talk some people out of taking jobs at competitors. He's also promising to make significant investments in the Journal.

But Murdoch wants to be nice to the Dow Jones employees on his terms, not the union's. News Corp. (NYSE: NWS) shareholders also are going to keep a close eye on the costs of integrating Dow Jones into the rest of Murdoch's empire.

The IAPE may have little choice but to accept a bad contract now and hope better times will come later. That's not great news, but then again there's very little of that for employees in most media companies.

Will Rupert Murdoch face a strike at Dow Jones (DJ)? originally appeared on BloggingStocks on Tue, 11 Sep 2007 09:45:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• In an effort to stem the flow of weaponry into Iraq, the Pentagon is planning to build its first base near the Iraq-Iran border, reported the Wall Street Journal (subscription required).
• Kohlberg Kravis Roberts & Co. is expected to make concessions with the investment banks putting together $24B in debt for its purchase of First Data Corporation (NYSE: FDC), something it had previously been unwilling to do, reported the Wall Street Journal.
• The Bush administration wants to limit the role of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) in the home mortgage crisis, but a number of Democrats, led by New York Senator Schumer, want to increase the authority of both firms by loosening growth constraints, and increase the size of mortgages they can buy in high cost areas, reported the Wall Street Journal.
• While the Nasdaq Stock Market Inc (NASDAQ: NDAQ) said it extended the deadline earlier this week, the "self-imposed deadline" for an LSE bid passed without a single firm bid, reported the Financial Times (subscription required).

• The U.K. Times reported that Russian state-controlled energy company Gazprom (OTC: GZPFY) considered making a rival $5B offer for business news company Dow Jones and Company Inc (NYSE: DJ), according to a source.
• The New York Times reported that after three separate recalls of Mattel Inc (NYSE: MAT) toys, Disney (NYSE: DIS) said it would begin testing toys featuring Disney characters, including ones already on store shelves.

Newspaper wrap-up: KKR to make concessions for First Data purchase originally appeared on BloggingStocks on Mon, 10 Sep 2007 09:14:00 EST. Please see our terms for use of feeds.

Another visit to the movie theater, another Murdoch triumph. The Simpson's Movie (a Fox Studios release) was very funny, but I think it would have been equally entertaining to see Murdoch close the Dow Jones and Company (NYSE: DJ) deal. If you could have heard some of the behind the scenes discussions from the Bancroft family, the majority shareholders of Dow Jones Inc., it might have been pretty funny also. In the end Rupert Murdoch and Homer Simpson are a big success, smiling gleefully all the way to the bank. Rupert taking money out of the account and Homer putting it back in. I doubt the Simpsons will make up for the billions, but perhaps it will take the edge off the early losses News Corp (NYSE: NWS) will not be able to avoid in the beginning.

The Simpsons Movie raked in the dough (or should I say "DOH!" since that is Homer Simpson's most used exclamation). The Simpsons television show is broadcast on the Fox Network, and the movie lived up to the hype. It is funny, the first half more than the second. Speaking of seconds, it would be no surprise to see Homer on the big screen again and Rupert making headlines again -- on one more paper he owns.

Rupert Murdoch & Homer Simpson are winners -- look for sequels originally appeared on BloggingStocks on Sat, 25 Aug 2007 11:10:00 EST. Please see our terms for use of feeds.

News Corp. (NYSE: NWS) Chief Executive Rupert Murdoch is launching a charm offensive to convince reporters at the Wall Street Journal not to jump ship once his $5 billion acquisition of Dow Jones & Co. (NYSE: DJ) becomes official, according to the Los Angeles Times.

The Times says Murdoch has called at least 3 reporters who were weighing job offers. No doubt, he'll call even more in the coming weeks.

But even if he didn't enjoy a deserved reputation for meddling in editorial affairs, Murdoch would have his work cut out for him. We journalists take pride in having a thick skin that's schmooze resistant. In fact, workplace romances are very common in newsrooms because it's a good place for cynical people to meet other cynical people. It's sad, I know. Murdoch, though, has to give it his best shot.

The tycoon is eager to prove to his many naysayers and advertisers that he's not going to wreck a great newspaper. No doubt, the paper's star reporters and editors will be promised everything short of a guest star role in "The Simpsons" to stay. Many Journal staffers will stay put because the paper pays pretty well and jobs in the industry aren't real plentiful.

After reading the story, the classic blues song "Baby Please Don't Go" popped into my head and now just won't leave. Them, the group which first brought Van Morrison to fame, recorded a great version of the tune in the 1960s. Please enjoy the video courtesy of YouTube.

Rupert Murdoch makes nice to Journal (DJ) reporters originally appeared on BloggingStocks on Fri, 24 Aug 2007 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Buffett wears his arb hat

Buffett wears his arb hat originally appeared on BloggingStocks on Wed, 15 Aug 2007 15:25:00 EST. Please see our terms for use of feeds.

WSJ ad sales tank -- Rupert to the rescue? originally appeared on BloggingStocks on Tue, 14 Aug 2007 16:15:00 EST. Please see our terms for use of feeds.