Murdoch offers grim message
Wednesday 11 October 1995
Speaking at the group's agm, Mr Murdoch also refused to rule out a future joint venture with BT - the subject of speculation at the weekend - but said that at present there are no discussions "on the rope".
Rumours erupted at the end of last week that Mr Murdoch was in talks with the BT chairman, Sir Iain Vallance, concerning co-operation in the "information superhighway". BT denied any such discussions but Mr Murdoch said yesterday: ''We have a joint venture with their partner MCI in North and South America and we would not rule out a similar joint venture in Britain and we are certainly looking with them. It's not just them ... we're all talking.''
The agm also approved the recently announced alliance with MCI, the US company in which BT has a 20 per cent stake. Under the deal, MCI will take a stake of up to 13.5 per cent stake in News Corporation for up to US$2bn and has first refusal on buying the Murdoch family stake in the event that they decide to sell.
The media chief warned that he expects flat to slightly lower earnings in the three months to September, adding that he does not expect higher dividends in the future for shareholders.
"We have built this company in 40 years from being a couple of hundred thousand dollars to being worth $20bn by pouring back the profits into it. Basically I think any shareholder will tell you, it has been a capital growth play. It has not been a dividend play," he said.
Shares in News Corporation fell by 12p to 324p on Mr Murdoch's newsprint predictions. "Paper costs are a worry and it is going to be some time before this turns around." But he remained bullish about the UK, where profits are expected to rise in the year to June 1996. Mr Murdoch said: "We have great faith in our newspaper position in Britain. We see growing profits ... if we increase our share of the market and manage to get even more competitive and even more efficient.''
Simon Calder looks at communities fighting back against the poachers
Arsenal 1 Everton 1: Substitute equalises with six minutes to go
Guide dog mauled while helping owner deliver Christmas cards
Chemical and radiation experts investigate after death of man found inside tent in field
Nelson Mandela’s complex bond with Britain
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
10 stone five-year-old taken into care
- 1 Turning up the voice of America
- 2 The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
- 3 The man who made Femen: New film outs Victor Svyatski as the mastermind behind the protest group and its breast-baring stunts
- 4 An obsessive’s documenting of Israeli war crimes in Lebanon can show us how the West lost respect for international law
- 5 Mass murder in the Middle East is funded by our friends the Saudis
- < Previous
- Next >
iJobs Money & Business
£42000 - £46500 per annum + Benefits: Pro-Recruitment Group: Big 4 Opportunity...
£300 - £350 per day: Harrington Starr: SQL Server MI Developer needed for Euro...
£25000 - £50000 per annum + Benefits + Bonus: Harrington Starr: C++ Server Dev...
£300 - £350 per day: Harrington Starr: Leading Electronic Trading Software Ven...