Kara Swisher

Recent Posts by Kara Swisher

Welcome Rupe! How's That Gemstar Deal (Not) Working Out?

gemstar

The Wall Street Journal gave a big hello to its new owner, Rupert Murdoch, who takes over Dow Jones (owner of this site) today, by publishing this tough piece also today on the disaster of News Corp.’s investment in Gemstar-TV Guide International.

It comes from breakingviews, an online financial commentary Web site that the news organization regularly adds to its print paper and online site. Dow Jones also is a minority investor in the site, which was writing about the recently announced deal for Macrovision to buy Gemstar, in which News Corp. owns a 41% stake.

Money (or, more precisely, non-money) quote:

But in gross terms, Mr. Murdoch looks to have paid $1.6 billion–after selling the magazines in 1991 and receiving cash from Mr. Malone in 2000–for the first half of his Gemstar stake. He paid $6 billion in News Corp. stock for the other half. That is nearly $8 billion for an investment valued at $1 billion today.”

Ouch!


Latest Video

View all videos »

Search »

Nobody was excited about paying top dollar for a movie about WikiLeaks. A film about the origins of Pets.com would have done better.

— Gitesh Pandya of BoxOfficeGuru.com comments on the dreadful opening weekend box office numbers for “The Fifth Estate.”