Date: 25th September 2000

Malone Could Become News Corp's No. 2 Man

Rupert Murdoch has been in talks with AT&T's Liberty Media chairman John Malone about a deal that would give Malone a bigger voice in News Corp and Murdoch a bigger stake in Gemstar-TV Guide (which he would then contribute to his Sky Global Networks package of satellite companies, increasing its valuation), the Wall Street Journal reported today (Monday), citing people familiar with the conversations.

A similar report appeared in the London Financial Times. Under the deal, Malone's stake in News Corp would reportedly rise to about 20 percent from 7 percent; he would also become a member of News Corp's board. In addition, he would receive an undetermined number of shares in Sky Global, the WSJ said.

Source: Studio Briefing