Sunday, June 24, 2007

News Corp's Digital Strategy -- Should They Stay or Should They Go?

As far as so-called "traditional" medias company go, Rupert Murdoch and News Corp. have been viewed as being forward-thinking pioneers in the digital world -- take MySpace, for example (acquired for $580 million a bit less than two years ago -- an eternity in the digital media business).

But, News Corp's recent moves are seen by some as signaling less confidence in the digital "new world order." Case in point -- Murdoch's current $5 billion bid to acquire one of the most decidedly "traditional" media companies, Dow Jones (parent of The Wall Street Journal); and, his current maneuvering to swap MySpace to Yahoo! in exchange for a 25% stake in the company (which would value MySpace at roughly $10 billion, which would represent a nice 20x return in two years!). Certainly, while MySpace remains a juggernaut, its recent growth has paled compared with the current Internet darling -- Facebook.

Steven Zeitchik of Daily Variety writes an interesting feature story of what he sees as being News Corp's "Digital Dilemma" and Murdoch's savvy maneuvering.