News Corp. is "in talks to acquire" a minority stake in
German media company Kirch Group in a deal valued at between
$600-650M, according to Lippman & Rohwedder of the WALL
STREET JOURNAL. The talks are in "a preliminary stage," but
such a deal would give News Corp. Chair Rupert Murdoch, who
has been "looking for a foothold in the lucrative German
market," a "sizable stake" in the Munich-based company.
Among Kirch Group's assets are SAT-1, one of Germany's
largest TV networks, and sports channel Deutsches Sport
Ferhesen (DSF), both of which "have been unprofitable for
years." A Kirch Group stake would "firmly place" Murdoch in
Europe's "largest" TV market, which had ad revenue of about
$4.4B last year (WALL STREET JOURNAL, 7/24). In L.A., Eric
Hansen has Murdoch and Kirch Group in "final negotiations"
and puts the price at "more than" $560M. Hansen adds that
DSF is "considered to be a potentially viable property, but
only if it can be attached to a successful digital pay TV
platform" (Eric Hansen, HOLLYWOOD REPORTER, 7/24).
