News Corp. (Fox Broadcasting Co.)

In 1985, media mogul Rupert Murdoch became a United States citizen. In 2004, he revealed plans to bring his multi-billion-dollar media conglomerate with him. It only makes sense given that the company’s U.S.-based business accounted for more than three-quarters of News Corp.’s roughly $20 billion in revenue last year.

The controversial Australian billionaire started small, inheriting his father’s modest newspaper holdings in 1952. Murdoch showed a knack for the business, and began making a substantial profit. In the 1960s, he expanded his newspaper holdings to England with great success.

I n 1973, he entered the U.S. market with the buyout of the San Antonio Express-News, now owned by Hearst Newspapers. He continued buying newspapers, but it was 1985 when he made his boldest move. That year, he bought Metromedia’s seven independent television stations from John Kluge. That, combined with the purchase of Twentieth Century Fox Holdings, made it possible for Murdoch to create the first new television network since the mid-1950s.

Murdoch’s decision to become a U.S. citizen was not necessarily related to any love of America—the Federal Communications Commission requires owners of television stations to be citizens. Even with the change in citizenship, the deal was still controversial.

Earlier this year, Murdoch announced he would move the headquarters of News Corp. as well as the company’s stock listing to New York City. Analysts predict the move and reincorporation will produce numerous financial windfalls, including the improvement of trading liquidity and enhanced capital access. It will also help solidify the Murdoch family’s control over the massive conglomerate.

The move comes on the heels of News Corp.’s 2003 acquisition of a controlling interest in satellite television broadcaster DirectTV. With the purchase, which Murdoch described at the company’s annual meeting as “the missing link in a global satellite platform,” Murdoch is able to deliver his product unimpeded to DirecTV’s 12 million subscribers.

Today, News Corp.—roughly 30 percent controlled by Murdoch family members—owns a number of newspapers, including the Times of London and the New York Post. It also owns British Sky Broadcasting, a satellite television network, and HarperCollins book publishers.

The aggressive, conservative Australian magnate’s most notable achievement of late has been the popularity of the Fox News Channel, the 24-hour news network. The news channel is consistently beating rival CNN in the ratings, but has also been blasted for its parade of right-wing commentators and accused of blatant bias in its reporting.

Regardless of politics, New Corp.’s broadcast empire includes 35 television stations and 200 affiliates for the Fox Network. And with the $6.6 billion purchase of DirecTV, those stations now have an independent means of continuing to broadcast the message.

—John Dunbar, Robert Morlino

August 20, 2004

Sources: News Corp. Web site and 2002 Annual Report, ketupa.net Media Profiles, Hoover’s Online, The Hollywood Reporter, Contra Costa Times.