Latest news with #RupertMurdoch
Yahoo
18 hours ago
- Business
- Yahoo
Sky retreats from Germany after losing billions
Sky has made a costly retreat from Germany 15 years after Rupert Murdoch broke into the market with hopes of building a pan-European pay-TV empire. The German broadcaster RTL has acquired Sky Deutschland for just €150m (£128m). The figure represents a collapse in the value assigned to the business in 2018 when Sky was acquired for £30bn by the US cable giant Comcast in a blockbuster auction. At that time Brian Roberts, Comcast's executive chairman and controlling shareholder, said Sky's continental footprint would provide crucial scale. The takeover of Sky would help Comcast compete in the increasingly global entertainment business against the likes of Netflix and Amazon, investors were told. However, it quickly proved that Mr Murdoch had sold up at the peak of pay-TV in Europe, as streaming began to make growth much more challenging. The difficulties that Sky had experienced in making Sky Deutschland profitable would not be easily solved under new ownership. The decision to sell Sky Deutschland at a heavy loss will be received as further recognition by Comcast that it overpaid for Sky. Sky acquired full control of Sky Deutschland in 2014 in a deal that valued the German operation at more than £4.4bn. It said on Friday that if RTL is able to hit profit targets it is in line to receive an additional €377m on top of the €150m cash up front. Sky Deutschland has never made a profit, operating in a market of famously thrifty consumers. However, following determined cost-cutting under Comcast it is expected to break even this year. The sale comes after repeated attempts by Comcast to exit Germany, which never achieved the scale of even Sky's tricky Italian business. Talks last year were overshadowed by uncertainty over Sky Deutschland's crucial top-flight football rights. They were secured in December, giving new impetus to the discussions. The agreement marks Mr Roberts' most drastic move yet in its battle to make his takeover of Sky more palatable for Wall Street, which has never shown enthusiasm for his European empire-building. Comcast already reduced the value of Sky by $8.6bn (£6.3bn) in 2022 and stopped breaking out its performance in financial reports. Last year, it also reported a £1.2bn write-down on loans to its German and Italian operations, which were bought by Sky in a £7bn deal in 2014. Struggles in Europe have prompted further cost-cutting efforts at Sky, which recorded a pre-tax loss of £773m in 2023, according to its latest accounts. Plans to cut 2,000 customer service roles were announced in March. However, as well as securing the sale of Germany, Sky has delivered apparent progress in Italy. Revenues there were up 8.2pc last year to €2.4bn and it swung from a loss to underlying earnings of €177m. Thomas Rabe, the chief executive of RTL, said the deal would 'bring together two of the most powerful entertainment and sports brands in Europe, and create a unique video proposition across free TV, pay-TV and streaming'. The German division, which operates in Germany, Austria, Switzerland and parts of Italy, holds the rights to broadcast the Bundesliga, the German football league, until 2029. Francois Godard, an analyst at Enders Analysis, said Sky had struggled in Germany with market share languishing around 10pc. Mr Godard said that earlier valuations of Sky Deutschland had been based on 'magic growth ... Of course, that did not happen'. He added: 'Germany has always been different from the UK. They never reached the kind of penetration they had in the UK.' Meanwhile, Sky's attempted overhaul was dealt a blow last year after bosses discovered an embarrassing advertising blunder. This stemmed from Sky uncovering miscalculations in its ad sales that meant its partners did not receive the correct revenues from their deals dating back years. Like other broadcasters, Sky has also been navigating a shift from linear TV to streaming, as customers switch from expensive satellite TV packages to on-demand streaming apps. Next year, it will face further competition as HBO launches its Max streaming service. In December, Sky secured a deal to keep HBO's shows, such as a new Harry Potter series, bundled with its service, but they will no longer be exclusive to the UK broadcaster. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
a day ago
- Business
- Telegraph
Sky retreats from Germany after losing billions
Sky has struck a cut-price deal to sell its German television business after losing billions of pounds on a troubled expansion spree. The media giant announced the sale of Sky Deutschland to Radio Télévision Luxembourg (RTL), Germany's biggest broadcaster, on Friday, in a deal that values the business at €150m (£128m). Comcast had been exploring the sale of Sky Deutschland for several years, which was bought from Rupert Murdoch's Fox for £2.9bn in 2014 but has never turned a profit. Cost-cutting The sale forms part of attempts by Sky-owner Comcast to radically scale back the British broadcaster, which is struggling amid increased competition from streamers. Comcast already slashed the value of Sky by $8.6bn (£6.3bn) in 2022 after acquiring the business for $31bn in 2018. Last year, it also reported a £1.2bn write-down on loans to its German and Italian operations, which were bought by Sky in a £7bn deal in 2014. Struggles in Europe have prompted further cost-cutting efforts at Sky, which recorded a pre-tax loss of £773m in 2023, according to its latest accounts. Plans to cut 2,000 customer service roles were announced in March. Meanwhile, RTL, which is part of media conglomerate Bertelsmann, could pay a further €377m (£321m) for Sky Deutschland based on its future performance. For example, extra payments will be triggered if RTL's share price exceeds €41. The combined business will have 11.5m customers. Thomas Rabe, the chief executive of RTL, said the deal would 'bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay-TV and streaming'. 'Germany has always been different' The German division, which operates in Germany, Austria, Switzerland and parts of Italy, holds the rights to broadcast the Bundesliga (the German football league) until 2029. Francois Godard, an analyst at Enders Analysis, said Sky had struggled in Germany with market share languishing around 10pc. He said earlier valuations of Sky Deutschland had been based on 'magic growth … of course that did not happen'. 'Germany has always been different from the UK. They never reached the kind of penetration they had in the UK.' Meanwhile, Sky's attempted overhaul was dealt a blow last year after bosses discovered an embarrassing advertising blunder. This stemmed from Sky uncovering miscalculations in its ad sales that meant its partners did not receive the correct revenues from their deals dating back years. Like other broadcasters, Sky has also been navigating a shift from linear TV to streaming, as customers switch from expensive satellite TV packages to on-demand streaming apps. Next year, it will face further competition as HBO launches its Max streaming service. In December, Sky secured a deal to keep HBO's shows, such as a new Harry Potter series, bundled with its service, but they will no longer be exclusive to the UK broadcaster.
The Guardian
a day ago
- Politics
- The Guardian
Antoinette Lattouf judgment underlines role of News Corp's deadline in ABC management's ‘panic'
There was another source of pressure on the ABC content chief when he hastily removed Antoinette Lattouf from air, the federal court has found. Apart from a coordinated campaign by the pro-Israel lobby which had ABC management in a 'panic', there was the looming deadline of Rupert Murdoch's broadsheet, a newspaper which is consistently hostile to the ABC. The Australian was asking questions about Lattouf's social media commentary on Gaza and apparently knew Ita Buttrose had received multiple complaints, the judgment shows. 'The pressure on [Chris] Oliver-Taylor was also amplified by the email from Sophie Elsworth of The Australian forwarded to him at 12.42 pm, asking a series of questions and asking for a response by 1.30 pm,' Justice Darryl Rangiah wrote in his judgment, which revealed the internal workings of the public broadcaster's executive floor. 'It was apparent The Australian intended to publish a story about the complaints regarding Ms Lattouf's social media posts and her ongoing employment with the ABC.' If Lattouf had to be stood down, Oliver-Taylor told his managing director, David Anderson, who was out to lunch with Buttrose, it should be done before the story ran. His text message said: 'Aus are going to run a yarn. I'm going to action this now and try and beat'. Shortly after Lattouf was sacked, an ABC spokesman responded to The Australian at 2.05pm: 'ABC Sydney casual presenter Antoinette Lattouf will not be back on air for her remaining two shifts this week.' Half an hour later, an online story read: 'A fill-in host for one of the ABC's most coveted radio spots has been sacked for a slew of anti-Israel posts after an influx of complaints from the Jewish community reached the public broadcaster's chairwoman Ita Buttrose'. Lattouf told the court during the trial how shocked she was that the story was published before she made it home from work. Lattouf was awarded $70,000 in compensation for non-economic loss but will not have her legal costs paid by the ABC. When it comes to Fair Work cases in the federal court, there is generally a 'no costs' principle, meaning each party pays its own legal costs. The ABC managing director, Hugh Marks, said the legal cost incurred was perhaps as high as $2m, which 'is not a good use of taxpayer funds'. Speaking to ABC Radio Melbourne, Marks said costs would go above the $1.1m detailed at Senate estimates because 'it sounds like there's still more work to do'. 'It would have been better if it settled, it would have been better if it hadn't happened at all,' he said. There is a further, not insubstantial, potential cost the ABC is facing: a fine for breaching the ABC's enterprise agreement and the Fair Work Act. Rangiah said he will hold a hearing on whether a pecuniary penalty ought to be imposed on the ABC for the breaches. Lattouf's lawyer, Josh Bornstein, told Weekly Beast the penalties for breaching the act may add up to as much as $460,000. Pecuniary penalties can be paid to the commonwealth, an organisation or an individual, the act says. Another legacy of the high-profile court case will be another change to the ABC's social media guidelines. In 2021 Anderson warned staff they faced disciplinary action, including termination, if they breached tough new social media guidelines. The warning came after two of the ABC's most experienced journalists, Laura Tingle and former Four Corners executive producer Sally Neighbour, breached the guidelines with posts on Twitter. More tightening is now on the horizon. Marks told ABC staff after the judgment: 'Due to confusion expressed about the Personal Use of Social Media guidelines, which was canvassed during the case, these have been reviewed and will be replaced with new Public Comment guidelines. We will talk more about this in coming weeks.' Reading the judgment, we'd have to say much of the confusion appeared to be coming from the multiple layers of management, rather than staff. The Daily Telegraph has done it again. The News Corp tabloid sent an email to subscribers claiming an exclusive on the international news that the US had bombed Iran. 'EXCLUSIVE: 'Very successful attack': Trump says US targeted three nuclear sites in Iran,' the email said at the same time as global media was reporting the same. 'The United States has bombed Iran, with Donald Trump announcing the bombing of three nuclear sites at Natanz, Fordow and Esfahan. Follow updates.' A couple of days after it was revealed News Corp's global chief executive, Robert Thomson, had become the highest-paid CEO of an Australian-listed company, with a $42m pay packet, the Murdoch empire handed the former reporter a five-year extension of his contract. The Victorian-born Thomson is responsible for multiple assets including the Wall Street Journal, the UK Sun and the Times, News Corp Australia and book publisher HarperCollins. News Corp is primarily traded on the US market, while retaining a secondary listing on the ASX. His 'exceptional' record, which includes the sale of pay TV network Foxtel to sports streaming service DAZN and a deal with artificial intelligence firm OpenAI, ensured he would remain in charge, the company told investors. The News Corp chair, Lachlan Murdoch, said: 'Robert has been instrumental in News Corp's growth and transformation, and his vision and leadership are extremely important as the company continues to navigate this era of rapid change.' The media regulator has knocked back a bid by free-to-air broadcasters to change the rules to allow more alcohol ads to be shown during children's television viewing hours. The Australian Communications and Media Authority (Acma) refused to register a new Free TV code which proposed extending M or mature programming slots, during which alcohol ads are allowed. The authority also urged the industry to 'proactively review the existing gambling advertising rules ahead of any potential government reforms' after it was made aware of 'significant community concern regarding gambling advertising on commercial TV'. Free-to-air broadcasters had lobbied the Acma to change classification rules as part of a new code of practice. Free TV wanted to allow an additional 800 hours of alcohol ads every year despite one in three children already being exposed to liquor commercials on television.
Telegraph
3 days ago
- Business
- Telegraph
MPs to vote on foreign ownership of newspapers after Lib Dem rebellion
The House of Commons will vote on Labour's plan to cap foreign state ownership of newspapers at 15 per cent after MPs objected to the proposal. The Commons will be given a chance to veto the law change, which was prompted by concerns about the planned takeover of The Telegraph by an investment vehicle backed mainly by the UAE. The Labour proposal will update the previous Conservative government's complete ban on foreign states owning stakes in British newspapers. It will set the limit on foreign ownership at 15 per cent following lobbying from newspaper proprietors such as Rupert Murdoch and Lord Rothermere, the owner of the Daily Mail's parent company. But opponents have said the figure is too high and will compromise the editorial independence of newspapers by giving foreign governments power over news coverage in the UK. Ministers had hoped to pass secondary legislation on the 15 per cent cap 'on the nod' in Parliament, which would have avoided a formal vote by MPs. However, the Liberal Democrats objected to the policy on Wednesday evening, forcing a full vote in Parliament next week. The party is alone among the major Westminster factions in pushing for tougher rules against foreign state ownership and is planning a 'fatal motion' that could kill the legislation altogether when it reaches the House of Lords. The vote is the latest in a series of Government responses to the attempted takeover of The Telegraph. RedBird IMI's original plan was blocked by the Tories' outright ban on foreign state ownership. The investment vehicle, which is a joint venture between American financiers and the government of the UAE, had positioned itself to take control by paying off the bank debt of the previous owners – the Barclay family – who lost control in early June 2023. Labour announced that it would look into the outright ban and prompted uncertainty about what proportion of foreign state ownership would be allowed. This process, which is now nearing completion, contributed to the difficulty RedBird IMI has experienced in securing an onward sale of the newspaper. After an auction process and more than a year of negotiations with prospective buyers, US private equity firm RedBird Capital, the junior partner in RedBird IMI, is preparing to become the controlling owner. 'Shoddy piece of legislation' MPs have forced the Government to revise its plans by raising concerns that multiple foreign states could each take 15 per cent stakes and 'club together' to transfer control of a newspaper overseas. In a letter to peers seen by The Telegraph, ministers said this scenario was 'highly unlikely', but they are expected to publish a piece of secondary legislation making clear that the 15 per cent cap applies to all foreign state ownership combined. Lord Fox, the Lib Dem business spokesman in the House of Lords, told The Telegraph: 'In seeking to pander to pressure from foreign powers, the Government rushed out a shoddy piece of legislation that flew in the face of previous laws. 'It's taken Liberal Democrat pressure for the Government to row back on one of their many errors in this legislation. 'We welcome their belated decision to stop multiple foreign states each owning substantial stakes in our British papers – a move that could have seen malevolent actors club together to undermine our historic press freedoms. 'It is time Ministers admitted the whole thing is a mistake and withdrew the measure. That's why the Lib Dems will vote against in the Lords and call on all other peers to join with them.'
Yahoo
3 days ago
- Politics
- Yahoo
Trump rips Fox News poll showing 53 percent approval on border
President Trump tore into Fox News on Thursday over a poll showing Americans virtually split on his handling of immigration issues and the southern border. The poll, released this week, found a majority, 53 percent, approve of Trump's handling of border security, while 46 percent disapprove. The outlet also noted the president's negative ratings on issues such as immigration, as 46 percent approve and 53 percent disapprove, and foreign policy, with 42 percent approving while 57 percent disapprove. His worst marks, per the Fox News poll, include the economy, with a 58 percent disapproval and 40 percent approval, as well as inflation, with 64 percent disapproving and 34 percent backing his handling. Trump, in a Truth Social post early Thursday, blasted the network and its findings. 'The Crooked FoxNews Polls got the Election WRONG, I won by much more than they said I would, and have been biased against me for years,' the president wrote. 'They are always wrong and negative.' The president claimed his followers dislike the network because of its polling 'even though their anchors are GREAT.' 'I hate FAKE pollsters, one of the Worst, but Fox will never change their discredited pollster,' he added. Trump has ridiculed Fox and other major television networks he feels have not covered the first several months of his second term fairly. The president has criticized Rupert Murdoch, the founder and former chair of Fox Corp., over the coverage he receives on Fox and in Murdoch's other media properties such as The Wall Street Journal and the New York Post. Trump regularly grants interviews to Fox News journalists, and selected several former hosts and pundits at the network to serve in key positions in his administration. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
