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Murdoch aims at German pay-tv
20/01/2002 18:15 - (SA)
Berlin - Media tycoon Rupert Murdoch wants to increase his stake in Kirch Group of Germany's ailing pay-TV business and take management control in order to return it to profit, Murdoch said in a newspaper interview released on Saturday.
Heavy losses at Kirch Group's Premiere pay-TV unit have fueled
speculation that Bavarian media mogul Leo Kirch will be forced to
ask Murdoch's News Corporation or other rivals for help as he grapples with mounting debt repayments.
Murdoch has denied that he is seeking a takeover, but told the
German weekly Welt am Sonntag that he wants his companies to have
"a more important role" in Premiere and said he held talks with Leo Kirch in the past week.
"If we increase our stake, then we want to take over the
management," Murdoch was quoted as saying.
News Corporation would prefer to team up with German investors in any rescue plan for the business, he added, but didn't give further details.
News Corporation already holds a 22% stake in Premiere. Its
leverage is strengthened by an option to sell the stake back to
Kirch after October 1. Some analysts say Kirch would struggle to raise the estimated $1.5 billion cost without help from an outside investor.
Speculation has also centered on US cable television
entrepreneur John Malone, whose Liberty Media Corporation is also trying to break into the German television market, Europe's biggest.
Murdoch said it was up to Kirch to decide the next step.
"We don't want to withdraw. We want to help solve the problems,"
he said, arguing that Premiere should ditch its cable technology in favour of higher-capacity satellite systems used by Murdoch's BSkyB broadcaster in Britain.
While underlining his aim to expand in Germany, Murdoch also
confirmed that News Corporation is selling its stake in Italian pay-TV operator Stream to rival Vivendi Universal. - Sapa-AP
- SAPA
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