David Prosser: Another headache for News Corporation

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The Independent Online

Outlook Whether Rupert Murdoch's News Corporation is overpaying for Shine, the TV company owned and run by the media mogul's daughter Elisabeth, as some shareholders allege, is debated elsewhere in this newspaper. But here are just two additional thoughts.

First, one of the reasons companies such as NewsCorp, where there is a controlling shareholder, often trade on more lowly valuations than their rivals do is that investors know what they are buying into. If you don't like owning a media company where your voice as a shareholder may not be heard loud and clear, maybe it is time to take your cash elsewhere.

Second, where does this row leave NewsCorp's bid for BSkyB, which has cleared the necessary regulatory tests but has yet to see a price agreed. When it offered 700p for Sky last year, NewsCorp promised to be disciplined about the bidding process. It is clear that 700p is not going to be enough to persuade Sky shareholders to sell, but will the Murdochs now find it just a little more difficult to go the extra mile to clinch the deal?

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