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NEWS ON
MURDOCH
I. Murdoch
reportedly eyeing channel TV-6.
Media magnate
Rupert Murdoch has expressed an interest in purchasing
shares in TV-6, “one of Russia’s most
politically independent central TV channels,”
‘Kommersant-Daily’ reported on 16
February. According to the newspaper, Murdoch is
primarily interested in TV-6, not Russian Public
Television (ORT). Earlier reports of his interest
in ORT prompted one State Duma deputy to submit draft
legislation stipulating that no foreigner or foreign
entity be allowed own shares in ORT. According to
the newspaper, the channel, which is owned by Eduard
Sagalaev (37.5 percent), Boris Berezovskii (37.5
percent), LUKOIL (15 percent), and the Moscow Science and
Technology Committee (10 percent), needs money urgently
because of the collapse in its advertising
revenues. The newspaper predicts that Moscow
Science and Technology Committee head Vladimir
Yevtushenko, “a protege of Moscow Mayor Yurii
Luzhkov,” will oppose the sale. — JAC
RFE/RL Newsline,
February 17, 1999
II. Murdoch,
Berezovskii unveil first joint project.
Media magnate
Rupert Murdoch and business tycoon Boris Berezovskii
launched their first joint project, when they purchased
101.7 FM from SBS-Agro Bank and unveiled a new station
called Nashe Radio, the ‘Moscow Times’ reported
on 13 February. Earlier, Deputy Prime Minister
Valentina Matvienko ruled out the sale of a stake in
Russian Public Television (ORT) to an international
entity or foreign person, Interfax reported on 11
February. Russian media had reported earlier that
Murdoch was engaged in negotiations with Berezovskii to
acquire a 20 percent stake in ORT. — JAC
RFE/RL Newsline,
February 15, 1999
III. Murdoch
seeking stake in russian media.
Media baron
Rupert Murdoch is reportedly negotiating with Boris
Berezovskii to acquire a 20 percent stake in ORT from the
influential businessman, ‘Kommersant-Daily’
reported on 6 February. In December,
‘Argumenty i Fakty’ reported that the Russian
government was preparing to sell 10 percent of the
government’s shares in the company to “a
serious investor” and that Rupert Murdoch was
allegedly interested in acquiring the stock so that he
would possess a truly global network (see ‘RFE/RL
Newsline,’ 22 December 1998).
After hearing
that talks with Murdoch were under way, Duma deputy and
member of the Our Home Is Russia faction Gennadii Volkov
drafted legislation that would bar foreigners from
acquiring stakes in ORT, ‘Kommersant-Daily”
reported. — JAC
RFE/RL Newsline,
February 8, 1999
IV. Media
tycoons alter jazz station’s format.
By Andrei Zolotov Jr.
Moscow yuppies
who like to listen to soft jazz, blues and serious but
unintrusive news on FM radio discovered Dec. 14 that
their favorite station, Radio NSN, was replaced by a
rougher Russian rock station, Nashe Radio, on the same
frequency, 101.7.
Little did they
know that the loss of the relaxing station also marked
the beginning of a new media partnership between Russian
tycoon-curn-politician Boris Berezovsky and
Australian-born media magnate Rupert Murdoch, which may
lead to much bigger projects, such as ORT television.
Oleg Ivanov,
general director of Nashe Radio, said the station, which
used to belong to Alexander Smolen-sky’s traubied
SBS-Agro bank, was purchased by a new company called
LogoVAZ News Corp., or LNC.
Although on paper
still the property of SBS-Agro subsidiary NSN, which
distributes news and commentary on the 1nternet, the
radio station was “in the process of a property
transfer,” Ivanov said in an interview Friday.
Russia’s
chief media regulator, Mikhail Seslavinsky, said at a
recent news conference that his agency, FSTR, went after
Nashe Radio for changing its broadcast format without
obtaining a new government license. But the
conflict was settled when the station owners applied for
a new license, which was issued Jan. 5.
The source
involved with the deal said the frequency was bought for
$80,000.
Ivanov said the
price was an “absolute secret” and the deal was
made “at the top level”—among Berezovsky,
Murdoch and Smolensky.
Berezovsky’s
spokesman Vladimir Raga continue stating that Nashe Radio
was the first joint project with Murdoch. He said
he could not specify the amount paid. News Corp.
spokesmen, reached by telephone in New York, said they
could not comment on the deal.
In late December,
Russia’s biggest I television station, ORT,
announced that Berezovsky’s LogoVAZ, Mur-doch’s
News Corp., ORT and TV 6 planned to form an advertising
agency that would sell time on the two television
stations.
Negotiations over
the advertising agency have been shrouded in mystery,
with neither Berezovsky nor Murdoch willing to comment.
In the meantime,
Russian media have alleged that Berezovsky’s
overtures to Murdoch go further, and a 20 percent stake
in ORT could be sold to the Western magnate.
These reports
generated a strong reaction from the Russian parliament
and the government, which controls a 51 percent stake in
ORT. Deputy Prime Minister Valentina Matviyenko said
Thursday that the Cabinet “would never support”
the sale of an ORT stake to a foreign company. “One
cannot even speak about it,” Matviyenko said,
referring to the proposed deal as “blasphemy.”
At Nashe Radio,
however, the partnership is already a reality. Mikhail
Kozyrev, who made his name in the Russian media and music
world as the producer of Radio Maximum and who now
produces Nashe Radio, chose music with a broader appeal
for his new project: quality Russian rock. He also
brought along several popular DJs from his previous
project.
Nashe Radio bills
its concept as “honest, time-proven rock music in
combination with today’s most interesting music
projects.” It broadcasts old socially charged
rock songs by groups like DDT, Alisa, Aria, ChaiF and
Nautilius Pompilius as well as today’s trendy pop
and folk by Mumy Troll, Masha i Medvedi, Linda and Vo-pli
Vidoplyasova.
Two-minute
newscasts every hour, with popular-style news reports and
weather forecasts, replaced NSN’s quality news
service.
Ivanov said NSN,
whose listeners were mainly young professionals, could
not sell enough ads, and 15 to 20 percent of its budget
was subsidized by SBS-Agro.
The station is
aiming to double or triple fast year’s rating of 0.8
to 0.9 percent.
The change has
not played well with Radio NSN’s fans.
“We are still in shock,” said Kseniya Ageyeva,
a designer at Domashny Ochag, a women’s
magazine. “Now the frequency is impossible to
listen to.”
But Nashe Radio
is acquiring its own devoted listeners. “The music
is fantastic!” said Natalia Kharlamova, a sales
representative. “They manage to pick up the best
from Russian music.”
The Moscow Times,
Feb.3, 1999
V. Rumours
persist of Murdoch interest in buying into ORT.
Those who have
been closely following developments in ORT [Russian
Public Television] (1st channel) realize that major
changes are in the offing there. The overt signs of
this process started when [journalist widely believed to
be under the patronage of influential ORT stakeholder
Boris Berezovskiy] Sergey Dorenko was removed from
presenting the “Vremya” [news] programme.
Later the tax service began putting powerful pressure on
another major figure at ORT—[advertising
businessman, under investigation on tax evasion charges]
Sergey Lisovskiy. It cannot be ruled out that
someone has been trying to get rid of key players in
order to take over the biggest Russian television
company.
The simplest
explanation would be that the prime minister is seeking
to deprive Boris Berezovskiy of his influence on
ORT. This is an achievable goal—to make the
company bankrupt for debts and change private
shareholders or even to nationalize it.
Meanwhile, there
are other rumours among ORT staff. They are coming
from the special services. The thing is that it was
not the prime minister who was behind the purges at
ORT. The point of departure is the same: the
television company has no money. The court is about
to declare it bankrupt with all the ensuing
consequences. In this situation Deputy Prime
Minister Vladimir Bulgak’s office is allegedly
drawing up “a document” on transferring a
10-per-cent state-owned block of ORT shares as collateral
to a major investor. Some people are saying that a
number of nonstate owners of the television company are
also prepared to offer their 10 per cent in exchange for
money. . . .
Today the picture
is different. Russia has no money now, pinning its
hopes on “outsiders.” Stubborn rumours
are revolving around one name, that of Rupert Murdoch,
Australian-American billionaire, who owns dozens of
newspapers and television channels around the
world. If he gets a 20-per-cent block of ORT
shares, he will effectively embrace the globe with the
television network he owns. Naturally, people like
Sergey Lisovskiy becomes superfluous: someone else
will handle advertising on ORT.
It cannot be
ruled out that Boris Abramovich [Berezovskiy] himself
could be behind this combination. By doing a favour
to Mr Murdoch through Mr Bulgak, he could become a
trusted person for the foreigner at ORT. This would
be typical Berezovskiy—he would get money without
losing “the object.”
‘Argumenty i
Fakty,’ Moscow, December 15, 1998
VI. Official
positive over rumours of Murdoch interest.
The Russian
millionaire and Executive Secretary of the CIS
(Commonwealth of Independent States) Boris Berezovskiy
has made a positive response to rumours that
Australian-born media magnate Rupert Murdoch [head of
US-based News Corporation] was interested in buying a
stake in Russian Public TV (ORT), Interfax news agency
reported on 16th December.
Berezovskiy, who
himself has an 11-per-cent stake in the channel, told the
agency that Western businessmen, including Murdoch,
showed an inclination to acquire Russian media outlets.
“The
government needs to help the Russian media not to be
afraid that they will be bought by Western
businessmen,” Berezovskiy, widely believed to have
influence over ORT’s policy, said, according to the
agency.
Interfax news agency,
Moscow, December 16, 1998
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