Murdoch: industry 'bearish'

Rose Major

Reports coming out of last week’s exclusive Allen & Co Sun Valley media conference look bad, with even News Corp’s Rupert Murdoch reporting the mood as “bearish, very bearish”.

Talking to US channel Fox Business News, and quoted by Reuters, Murdoch said he was “shocked at the business mood, which is talking about either that we’re at the bottom or going lower, but that it’s going to take years and years, like five years at least, before we see any real growth coming out of this [climate].”

With traditional media companies finding themselves buffeted not just by the advertising recession, but also by upstart internet companies undermining their traditional revenue streams, there seems to be little love for new media among the old. Asked about the chances of his company lookingat acquiring social networking sites such as Twitter, Sony Corp’s chief executive Howard Stringer responded: “A lot of people are doing very well at making very little money. It's not a club I'm looking to join."

Murdoch also said at the conference that News Corp would hold on to its US$6.05 billion in cash until the recession ends.