Murdoch's Sky Global float 'on course'

Rupert Murdoch will also be chairman of Sky Global

News Corporation chairman Rupert Murdoch is insisting that the $40bn floatation of his firm's global satellite operations is still on course, despite concerns over volatile tech stocks.

The aim is to build a great global pipe capable of delivering broadband television into every home in the world

Rupert Murdoch

Mr Murdoch blamed US regulators for delays in the plan to spin off the group's satellite businesses into a single company, Sky Global Networks.

News Corp plans to list the new company on the New York stock exchange by the end of the year.

But Mr Murdoch poured cold water on speculation that the float would happen within the next month, at News Corp's annual general meeting on Wednesday.

Shares fall

Mr Murdoch said the "company-changing" float would happen "as soon as possible".

"The aim is to build a great global pipe capable of delivering broadband television into every home in the world," Mr Murdoch told shareholders.

News Corp will retain a majority shareholding in Sky Global Networks, with Mr Murdoch as chairman.

The new company includes News Corp's Asian star TV company, its 37.5% stake in Britain's BSkyB, its south American assets and its stake in US interactive TV company GemStar.

Murdoch's speach

News Corp's traditional media businesses had a good year, Mr Murdoch told shareholders in Adelaide. Among the highlights were:

• Profits at News Corp's British newspapers were up 27%, on the back of increased advertising revenues.
• Earnings at 20th Century Fox films had been hurt by two major box office flops - but strong new releases were in the pipeline
• Ratings at the US Fox TV network had been disappointing - but investment in new programmes was expected to show stronger returns
• Operating incomes at News Corp's book publishing businesses were up 85% for the year.

Ratings for India's Star Plus TV channel had also been transformed, thanks to the local version of 'Who Wants To Be a Millionaire'.

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Mr Murdoch said the programme "alone had changed the economics of Indian television."

Star Plus's performance had helped to stem losses at Star TV as a whole, he added.

Interactive television

Mr Murdoch said News Corp was pushing ahead with plans to develop interactive TV systems with its US partners.

In September, the company secured a deal with US cable television pioneer John Malone's Liberty Media, underpinning the Sky Global public offer.

Mr Murdoch said he was in talks with other potential strategic partners, including US television service DirecTV and its competitor EchoStar.

He also expressed his enthusiasm for electronic book systems, which he said would eventually be used to deliver magazines and even newspapers.