Wednesday, July 27, 2011

murdoch again

Two weeks ago, I wrote in this blog that the Murdoch scandal could lead to the sale of the newspapers of the group. A few days later, rumor spread in the British press that the media lord had hinted he could get rid of his London publications. To day, I still believe that the crisis facing the largest media empire in the world could result in a complete reorganization of the group.

However, it is a well known fact that Rupert, contrary to his sons and deputies is a real press maniac (see the report on his behaviour in with testimonies from former journalists of News Corp.). If he sells the less profitable but most cherished part of his properties, he will send a strong signal to his many ennemies and rare friends in the media world. It will mean the old man is giving up after 50 years of fight in the world of tabloids. After the disastrous sale of Myspace, it would be another terrible failure.

The next question is: who could buy. Very few investors are interested in print and even the Times of London is not the powerful opinion maker it used to be. The Web and Twitter have gained so much ground that now, according to recent research, 56% of the Americans consult every day the news on the Web.

The outcome of News Corp is a major challenge to all media actors.