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Murdoch, Rupert

Unanswered Questions Surround Tony Blair's Relationship with Rupert Murdoch

Strategic Insights

— 2 min read

Tony Blair's denial of treating Rupert Murdoch any differently than other businessmen has sparked controversy, with questions remaining unanswered about his involvement in Murdoch's attempt to buy a stake in the Italian broadcasting market. The Prime Minister's official spokesman described as "a joke" reports that Blair intervened on Murdoch's behalf with Italian Prime Minister Romano Prodi, but Blair refused to discuss a private telephone call with Prodi. The controversy could prove embarrassing for Blair as the Government faces the prospect of overturning a Lords defeat on the Competition Bill, which could prevent Murdoch selling the Times at a cut-rate price.

Key Takeaways:

  • Tony Blair denied treating Rupert Murdoch any differently than other businessmen, but questions remain about his involvement in Murdoch's attempt to buy a stake in the Italian broadcasting market.
  • Blair's official spokesman described as "a joke" reports that Blair intervened on Murdoch's behalf with Italian Prime Minister Romano Prodi, but Blair refused to discuss a private telephone call with Prodi.
  • Blair's denial of intervening on Murdoch's behalf was corroborated by Downing Street sources, who insisted that the call came from Prodi.
  • The deal between Murdoch's News Corp and Italian Prime Minister Silvio Berlusconi's media holding company Mediaset collapsed after 72 hours, with Murdoch offering 10,000 lire per share.
  • Shares in Mediaset fell on news of the collapsed deal, but steadied the following day.
  • The Italian Government's centre-left coalition reacted to the deal by urging Berlusconi to prevent private television stations from falling into foreign hands.
  • Blair's official spokesman refused to deny that Blair used the opportunity to discuss the Murdoch issue with Prodi.
  • Blair's private meetings with Murdoch remain unclear, with Downing Street refusing to discuss suggestions that they had met recently.
  • The deal's collapse has left a door open for possible future negotiations between Murdoch and Mediaset.

Statistics:

  • 5.8 trillion lire: the offer made by Murdoch for Berlusconi's controlling 50.6 per cent stake in Mediaset.
  • 10 days: the time frame in which the supposedly top-secret talks were artfully leaked.
  • 72 hours: the deadline given to Berlusconi to decide on Murdoch's offer.
  • 50.6 per cent: the percentage stake in Mediaset controlled by Berlusconi.

Sources:

  • Reuters: "Blair denies treating Murdoch specially"
  • The Times: "Murdoch deal collapses after 72 hours"
  • La Stampa: "Berlusconi's flirtation with Murdoch in 1995 goes nowhere"
  • Carnelutti: "Legal advice on Mediaset recapitalisation and flotation"
  • BBC News: "Murdoch's Italian TV bid collapses"

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