By Christopher B. Daly
Is all the coverage of Rupert Murdoch’s play for Time Warner a bit of an over-reaction?
The NYTimes, for example, cleared the decks and went all-in, devoting nearly a double truck of today’s Business section to coverage of an 83-year-old business mogul who wants to take over a 91-year-old media company.
So, it turns out that Murdoch wants to own the company that is a distant relative of the company founded in 1923 by Henry Luce, one of the earliest of the modern media moguls. Luce created TIME magazine with his co-founder and frenemy Briton Hadden, and in its day, TIME was the cool new thing. Over the decades, Time Inc. added more magazines that became household names — Fortune, Life, SI, People, etc. As I wrote in my book Covering America, Luce used his midas touch with magazines to become a wielder of great influence in American politics, culture, business, and foreign policy. In the late 20th Century, Luce’s successors made a series of mergers and acquisitions that transformed a magazine publisher into a multimedia giant. More recently, the company’s executives decided to spin off the print properties, leaving Time Warner as a company with a desirable core of television and film content-makers. That’s what Murdoch wants.
Murdoch himself went through a similar process of corporate cell division last year, dividing his News Corp. into separate print and video divisions. He is using his profitable new company, 21st Century Fox, to gobble up Time Warner. If he succeeds, as he might, it would also represent the final victory of 20th Century Fox movie studios founder Daryl F. Zanuck over his great Hollywood rival, Jack Warner. (Ironically, Zanuck learned the business at Warner Bros., making his bones with “Rin Tin Tin” but left after creative differences with Jack Warner over the making of “Baby Face.”)
It’s hard to find anyone to root for in all this.