Date: 16th January 2001
Rupert Murdoch has ordered a halt to acquisitions and and has instituted retrenchments throughout his media empire as he seeks to accumulate enough resources to acquire the satellite service DirecTV and combine it with his other satellite operations to form Sky global Networks, the London Financial Times reported today (Tuesday).
According to the newspaper, News Corp is also looking to dispose of some assets in order to raise cash for such a purchase. Its decision to break up its online division, laying off about 200 employees in the process, is said to be related to the money-hoarding scheme. One senior executive told the FT: "The financial people are looking under every rock for money." Today's New York Daily News reported that rival New York Post, owned by News Corp, will make cuts in all departments in the weeks ahead.
Source: Studio Briefing