News Corp is likely to form a new company with partners to allow it to enter the high-speed Internet market in the United States (US), the Wall Street Journal reported on Saturday. Rupert Murdoch, News Corp chief executive, told the newspaper, "Here (in the United States), we don't know. We may be forming a company with partners to build something out here that would give you broadband."
News Corp, which controls top US satellite TV service DirecTV Group Inc, does not currently offer high-speed Internet service.
The chief executive of News Corp, owner of 20th Century Fox movie studios, the Fox News Channel and the New York Post newspaper, said when consumers begin using new high-definition home-video cameras, they will want more two-way bandwidth.
Murdoch dismissed rumours that cable magnate John Malone wanted to take over New Corp, but added that he watches Malone closely. "We have a very civil relationship, but I just gotta watch him so that, in the interests of all shareholders, you can't have someone creep up and get control of the company without paying a premium," Murdoch told the newspaper.
In August, News Corp extended without shareholder approval its "poison pill" provision to guard against hostile takeover. The anti-takeover measure was originally adopted last year after Liberty Media Corp, controlled by Malone, boosted its voting stake in News Corp to about 18 per cent. Murdoch also said he would like to buy the Wall Street Journal, although he acknowledged that the paper was not for sale.
After Murdoch convened a group of his top managers to plot a new approach to the internet earlier this year, News Corp has spent about $US1.3 billion to buy MySpace.com owner Intermix Media, gaming web network IGN Entertainment, and online sports company Scout Media.
UK satellite broadcaster BSkyB � 37 per cent owned by News Corp, with Murdoch as chairman and son James as chief executive � has also agreed to buy broadband provider Easynet for �211 million, with an eye on developing a hybrid broadband delivery platform.
Earlier last week, Murdoch announced his grand entry into the online arena in the United Kingdom (UK) with the acquisition of the classified advertising website Propertyfinder.com in a deal worth �14.3 million ($25.3 million). News International wants to turn the portal into the largest property site in the country.
The company was partnered in the deal by one of its subsidiaries, realestate.com.au, an Australian property website in which News International owns about 52 per cent shares. News International, which owns the Times, the Sunday Times, the Sun and News of the World in the UK, is a subsidiary of News Corp.
