Tuesday, July 24, 2007

रिवर्स मिदास touch

Murdoch's reverse Midas touch in U.S. print

Murdoch has a way of killing the geese that lay the golden eggs in American print media. In recent years, he's a glittering success because of Fox TV and because his newspapers do well overseas.

But in America, all his attempts at print media have been monetary black holes. He went on a U.S. newspaper and magazine-buying spree back in the 80's and went effectively bankrupt, though Citibank laid off his debt and bailed him out. Yet he was required to sell off virtually all his U.S. print properties.

He knows the razmataz, but profit has always eluded him in the U.S. print market. His principle current print holding, the New York Post, has for decades been a notorious profit sponge subsidized by News Corp's other operations. In fact, the Post is a reason for Dow Jones investors to beware Murdochian methods. He won't give up a money loser to maximize profit if it doesn't suit his personal proclivities.

So, based on Murdoch's print media record, the great Dow Jones takeover is likely to be followed by a ruinous longer term slide in Dow Jones value.

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