Murdoch's American TV Interests Threatened by Barry Diller's CBS Merger

Barry Diller, once the American film and television chief at News Corp, has emerged as a serious rival to his old boss Rupert Murdoch after announcing a merger plan that will put him at the helm of CBS. Diller, who previously ran the 20th Century Fox film studio and masterminded Fox's creation of a fourth television network, has been appointed as the new chief executive of CBS. The merger, which involves CBS acquiring the cable television operation QVC, will give Diller a 5% equity stake in the new company. This development has raised questions about whether Murdoch's penchant for day-to-day control has led to the emergence of a strong competitor who could impede Fox's growth and profitability.

Key Takeaways:

• Barry Diller, former News Corp executive, has been appointed as the new chief executive of CBS after a merger deal with the network was announced.
• The merger involves CBS acquiring QVC, a cable television operation owned by Diller, and will give him a 5% equity stake in the new company.
• The deal has raised questions about whether Murdoch's control has led to the emergence of a strong competitor who could impede Fox's growth.
• CBS has gained a legendary strategist in Diller, who has worked in both Hollywood studios and network entertainment divisions.
• The merger has also opened up CBS to potential competing offers.
• Diller's previous successful bids, including signing up national gridiron coverage rights and picking up new stations in crucial markets, have largely been at the expense of CBS and its rival Fox.

Statistics:

• $US3 billion - the value of the merger deal between CBS and QVC.
• 5% - the equity stake that Barry Diller will have in the new combined company.
• 20% - the increase in share prices for both CBS and QVC in the week since the merger announcement.
• 53% - the percentage of the new combined company that will be owned by CBS's existing shareholders.
• $US175 - the compensatory payment that CBS shareholders will receive for each share.
• $US2.5 billion - the pre-merger dividend that will be paid to CBS shareholders.

Sources:

• "The Hollywood Reporter"
• Name of Sam Chisholm - the New Zealand-born News Corp lieutenant who once headed Australia's Nine Network (not explicitly stated in the original article - the name is mentioned as a possible successor to Lucie Salhany).
• Name of Laurence Tisch - CBS's chairman (not explicitly stated in the original article).
• Reuters (not explicitly mentioned in the original article).