Posted on 23-1-2004
Malone
move casts shadow over Murdoch succession
Malone: speculation he is planning takeover bid for News Corp
Questions were raised today about the future of News Corp after
Rupert Murdoch's sometime-ally and sometime-foe John Malone
became the second largest voting shareholder in the company
through a shock overnight deal.
Mr Malone, a notoriously shrewd dealmaker who made his money
in cable TV and owns QVC shopping channel and half of the Discovery
network, increased his stake to 9%, a major change for News
Corp as Mr Murdoch has never before had a shareholder with almost
one third as many votes as him.
The deal immediately raised questions about Mr Malone's plans
- some analysts have speculated as to whether he is planning
a takeover bid and whether the move could scupper Mr Murdoch's
succession plans involving his sons James and Lachlan.
Others believe it could be a sign of a new and formidable alliance
between the two moguls.
Mr Malone's move cements his key position at News Corp, as
the man who can confirm or deny Mr Murdoch's plan to pass control
of the media group to his family.
"Privately the Murdochs will be meeting behind closed
doors and asking 'what's going on here?'" one Australian
analyst told the Australian Financial Review, which follows
News Corp closely.
According to reports, Mr Murdoch only learned of Mr Malone's
new holdings on Tuesday. "It is shocking that the transaction
would take place without a phone call from Malone to Murdoch,"
a US media executive told the New York Times.
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