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The Packer-Keating-Murdoch War: Exposing the Turf in Australian Politics

Strategic Insights

— 1 min read

Rupert Murdoch's News Corp has long been a dominant force in Australia's media landscape, with interests spanning newspapers, magazines, and television networks. However, the recent row between Kerry Packer, chairman of Consolidated Media Holdings, and Prime Minister Paul Keating over foreign media ownership has brought the issue to the forefront. As Packer and Keating engage in a war of words, other players, including News Corp and its CEO Rupert Murdoch, are weighing in.

Key Takeaways:

  • Kerry Packer warned Prime Minister Paul Keating that he would not be left behind in the proposed media reforms, stating he would acquire more than 5% of Fairfax Media if necessary.
  • Rupert Murdoch plans to increase his stake in Fairfax Media from 25% to 35%, prompting Packer to express concern about foreign ownership.
  • Packer criticized Keating's handling of the pay TV battle, claiming it was "the last scam" he had seen, and accused Optus Vision of pressuring the Government to hand over half of Telstra's market share.
  • Keating shot back, labeling Packer "in the conflict business" and accusing him of hypocrisy over foreign media ownership restrictions.
  • News Corp CEO Ken Cowley defended John Howard's credentials as a potential Prime Minister, saying Packer's criticism was "disingenuous."
  • John Singleton, an advertising executive, commented that the controversy was an issue that should be taken out of the financial pages and into the sports section.
  • Murdoch attacked Packer's business acumen, stating that he spends his time playing polo rather than running his business.

Statistics:

  • 5%: the proposed stake that Kerry Packer was willing to acquire in Fairfax Media if necessary
  • 25%: the current stake that Rupert Murdoch has in Fairfax Media
  • 35%: Packer's goal for increasing Murdoch's stake in Fairfax Media
  • AUD 7-8 billion: the estimated amount that the Commonwealth public purse transferred to an industrial company in the pay TV battle
  • 25%: the stake that Packer's organization, Consolidated Media Holdings, has in Optus Vision

Sources:

  • "A Current Affair" interview with Kerry Packer
  • New York Times, "Rupert Murdoch Seeks to Boost Fairfax Stake"
  • Australian Financial Review, "Murdoch eyes Fairfax stake"
  • Sydney Morning Herald, "Packer warns Keating"

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