In 2001, News Corp. is the smallest of the major media and entertainment conglomerates, but it has the widest global presence. In an effort to achieve greater distribution presence in the United States to establish, News Corp. had looked DirecTV, the largest U.S. direct broadcast satellite provider, in what many observers had as an acquisition would be “transforming acquisition.” After 20 months of trying to do this, and the recent competitive offer from EchoStar, Rupert Murdoch, chairman and CEO of … Read more »

In 2001, News Corp. is the smallest of the major media and entertainment conglomerates, but it has the widest global presence. In an effort to achieve greater distribution presence in the United States to establish, News Corp. had looked DirecTV, the largest U.S. direct broadcast satellite provider, in what many observers had as an acquisition would be “transforming acquisition.” After 20 months of trying to do this, and the recent competitive offer from EchoStar, Rupert Murdoch, chairman and CEO of News Corp., the company pulled the bid for DirecTV. This case describes how Murdoch has created a global empire from a single newspaper in Australia. News ‘major assets are its newspaper businesses, film and television production, satellite radio, television channels, as well as book and magazine publishing. Too, describes News’ distinctive style and operating system Murdoch’s role in shaping the corporate culture. News Corp must now confront three sets of questions. First, how important it is for News Corp. to create a distribution presence in the United States, and it should pursue a different approach? Second, as to address the deteriorating economy of two core businesses: newspapers, network television? Thirdly, what’s competitive position vis-a-vis be the impact of the recent suspensions of cross-ownership restrictions in the media industry to News Corp. other large corporations?
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from
Bharat N. Anand,
Kate Attea
Source: Harvard Business School
38 pages.
Release Date: 04 April 2002. Prod #: 702425-PDF-ENG
News Corp. HBR case solution