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Exclusive: Chairman and CEO offers insight into decision to divide media company, reacts to Supreme Court decision
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Thank you very much will you have heard it here the Supreme Court the United States has.
Upheld by -- cards.
The health care act that became law that became depending on who you talk to a big burden to business -- big boon to business.
We thought we'd check in with the CEO of of various.
Stands a business that has a very substantial.
Benefits plan in its own right he also -- happens to be my boss Rupert Murdoch of course the chairman and CEO of news corporate parent.
Of this fine company of Fox News Fox Business.
Although all things media mr.
Murdoch good to have you thank you damaged now we have a lot of corporate developments of course you're up on -- but I do wanna get your reaction first -- To the Supreme Court essentially saying Mr.
President you didn't go to Florida this thing is fine but mandate is fine.
Welcome following the S Supreme Court.
Hearings.
I'm a little surprised.
But it's clearly have.
Who will be seen a big victory for the president of them will -- in high fives at the moment and the White House.
But.
On the other hand.
Every potion is not a popular bill.
So we're going to be an action and trying to have it there -- magic.
Do you worry -- a lot of businesses it said that -- With this law or not.
Health care and premiums and the cost of providing benefits to workers.
Would continue to soar.
On the administration has argued yeah but for guys like you not as much now that this health care.
Laws protecting what do you think about -- -- -- affect our business very much but suddenly.
I think it's -- Shannon there's gonna add tremendously.
Nativity and to the national budget nationals.
And I just worry about.
Does entitlement culture we've seen what is taking Greece we see what is taking France and -- and today.
So on a political level.
I worry about it.
But of course I'm felt.
-- health services being available -- possible.
-- -- you an actor by the way before it gets some corporate particulars the report federal review when that crowd that said.
This.
Is this -- -- If -- were shot down Tom.
You would have seen premiums rise.
Substantially more than they've -- -- -- I don't -- so I do believe there's a lot of things.
In the medical profession.
And and all -- held services we seem to be outrageous expensive and going up too fast.
All right so bottom -- a done deal but you know it's a mess there there's this bill I met some you know -- actually read that he's -- -- -- times.
The length of war -- -- And that was a Democrat it was -- -- of.
You're right no matter and that one didn't end well that particular -- on let's talk a little bit about what.
You're doing today because in the middle of these big national.
Court headlines in congress -- -- holding the attorney general the United States and contempt.
Here you -- announce that you're going to be splitting your company and to.
One -- -- on the broadcast part of the business the other -- -- to print publishing side of the business.
And I'm I'm always wondering -- about the timing.
Obviously you knew this day was commenting.
Did you wanna get this under the radar.
Or.
What -- I don't know him but not that -- -- planning.
We.
Having come did this to the decision.
That we would have a goal of meeting and see if they agreed to -- into.
Pursue this option.
We wanted to do it this week we thought on a Friday as bad because it would get component -- any bad news -- to put -- on Saturday.
And next week is driven on week with.
July the fourth and then -- -- -- used to this point because you have resisted these overtures in the past and I know probably getting advice from both sides.
Jason Terry that's really president he's been put he's been mentioning this.
-- you know this has been going on David -- -- chief financial officer.
What was the reason.
Ahead of them not to tonight.
But wanted to this now sent.
But I do believe that I -- -- will benefit from it absolutely well brought -- to it was.
-- Now resisting that I've been 58 is filling in coming.
Graduating.
That logic.
I realize the logic common and how -- companies would be -- managed to Bennett in Libya.
A lot better in every way.
Now obviously the more attractive -- profitable side of his business.
Is the broadcasters decided that includes.
Com is where where we -- right now on.
And and the publishing site a little -- any money on new buildings like this yes that's.
We -- what you need to keep calm but let me ask you about who runs that business.
On the on the publishing candidate to run both companies but on that publishing so different side who's gonna run that.
-- -- -- -- -- We have it's.
Great division heads -- in Britain or stray hero -- Some of them very knew that -- -- you in the last six months in that in those positions.
And -- we've equipped with a live -- would be great management run across.
The whole company.
Do you make -- -- -- from folks -- someone from pokes his shot on.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- He wouldn't be doing this if it's not for the hacking scandal and that that prompted this maybe it's a way that keep any litigation.
Any of that on on the publishing side since that's where it originated in Britain.
And you can divorce of more lucrative profitable parts of the businesses.
From from that and that had it not been an acting scandal.
You wouldn't be.
Here now you're -- not into the adult.
Apple but this is not in reaction to it.
And it does it looking forward to what's best -- -- companies know what's best for our shareholders for you over the worst of that I don't know we'll -- -- or is it.
We'll she's probably everyone thinks that -- -- don't -- is it gonna take at least he has to do.
When used to companies have duties and and we with.
How we did with a fastball that by the end of it all right a British sky broadcasting did you have a 39% stake in and regulators in Europe.
-- -- looking -- the hacking scandal saying that they didn't think that you were six.
To take it over to buy it outright tell even no mistake not -- I didn't -- -- -- -- said that a total.
There you don't have anything against -- -- doing that pay a minute a number of Tebow on then.
It parliamentary committee true that in when asked.
Today have any evidence -- -- not so you're not you're you're you do you still want a bit to be studied to buy it outright and new.
Had angles I -- visited Don and Aaron thinking and now from that okay.
-- The -- -- -- -- billions and billions of dollars in important and want them who got good places to put an idea how much more bullish about -- -- have a -- oh really so you're are you pulling back.
On on one you know -- I'm -- send your -- well -- -- a lot more reluctant to invest in new things in Britain today.
Then I would be he -- You know as a result of what -- election on Sunday because of what you want to not a not a tall distinguished.
The fifth but.
Knew the Euro and the mess and in Europe and I don't even without Florida and everything you do with the era the interest and I think -- and for a very long tough hole.
And semi recession if not real recession.
And then I just hope we don't get into that he had.
We can these past expansions of a government expenditure.
We are going to be energy independent.
In a few years.
The government doesn't get in the way that is happening very fast now.
At the national gas.
Will be available -- -- -- -- succeed callon.
You know -- Quickly got things to be very bullish about in this country -- It's you're here you're not optimistic about Europe -- you're very optimism about America's president -- do.
What he's ever in the White House.
Well yes of course would -- to do.
-- the White House.
And we'll see.
If President Obama gets reelected.
With the Hilton left to will be more pragmatic comeback -- of the Santa we just have to see still got a big one today what I'm saying about.
Yes.
But it may not be when when it comes the election -- -- We don't.
-- I think that.
I'm taking a medium and long term view about this country not an immediate -- So let's look at this what you're gonna do with this new split company now of course you've been mentioning your right to shares have been rising I should disclose -- -- News Corp.
Shareholder -- was like that when that happens.
-- It's do you think though that if you have a separately traded stocks for the publishing and that it doesn't perform -- well.
-- Eagles suddenly and the presents how many of thinking in the markets it'll it'll carry out low the ratio we certainly do -- -- absolutely.
Which would saddle up and address -- when -- middle got a lot of high and net net net they -- us who are here today will be a lot better off.
The environment and for the media has looked better here advertising revenues of very strong for you got a strong political year.
Are you optimistic.
For.
You just the media in general this year and next.
In this country.
Yes.
I think so.
-- -- it.
You know we've seen them.
What's happened with search advertising it works and it and -- -- -- money which was previously.
In attack in newspapers particularly Sunday news -- big monopoly ones which we didn't have any.
But.
And that there have been affected.
But television is holding on -- very very well.
Didn't -- -- and the economic climate.
Is uncertain great in this country and I would say that.
In the up fronts for the big networks.
They achieve some increases.
In in rates.
Not.
Not in total money.
And it was a little -- -- this year.
That it has been in previous years.
Very quickly indeed the money nobody's coming -- cable channels hideouts -- Muslim absolutely do you leverage that more here and in the you've been buying back.
A lot of stock over the course of the last year the stock has run -- a great deal it's a 12%.
This week alone it's had a very good year in Australia it's up north of -- 4%.
Year to date on what do you do with that money now.
What acquisitions would you call soul we've said will continue the buyback.
And democratic capitalize.
This spin -- -- publishing company and that's going to be who will be starting them off from the world.
And it could negative net.
Positive cash position.
And who can will be opportunistic and what we buy and what we do.
Tim.
We don't have anything it on the -- at the moment that hasn't been announced.
Regardless of who is elected the next.
In November and whose president can -- does that ever make a difference when all is said and done with your business plans.
No I would say that.
It -- and -- taxes go up front so unless you have less cash.
And the man fitting is that that that happens to -- will slow down.
Oh hole and not get much better than what it is today we might have.
If you are too many in my to have that continuation where we -- not that other things will be going off.
Real finally quickly and you've been very patient.
How your son's -- room for James.
In any way shape or form expanded roles in my Dora and Ryan.
Go to those cable lineup and everyone's got involved so now.
Now this is what about -- -- what about James in a more expanded role here.
Well -- do and it.
And that they wanted to.
-- -- very happy bunnies and businesses and assured him.
And loves living and so well -- so he wouldn't take over the publishing.
I think that's how -- actually.
-- -- -- -- Good luck I'm just trying to get a thousand jury -- -- over.
Mr.
Murdoch it's a pleasure thank you very much on the big news that -- -- For US well just to update you again on -- day the Supreme Court of the United States has upheld of the president's health care law.
A major media player and -- -- non plots -- all of that Rupert Murdoch and his company carry on.
That'll do it here.
Taken him.
