Murdoch Buys Into Singapore, Maybe Hong Kong

Communications Today, Feb 29, 2000

Rupert Murdoch yesterday said his News Corp. [NWS] will spend $1 billion to buy 4 percent of outstanding shares of Singapore Telecom [SES:TELE.SI] to fund SingTel's effort to buy Cable & Wireless HKT [HKT].

Murdoch said SingTel is the best partner for his planned, massive broadband-and-content expansion in Asia. News Corp. and SingTel will create three joint ventures focusing on Internet access, including e-commerce and the creation of regional ISPs; broadband, including interactive TV and video-on-demand; and a mobile Internet portal for SingTel's wireless units.

The deal will make News Corp. the "clear pacesetter" in "the most dynamic and lucrative markets in Asia -- Hong Kong and Singapore," Murdoch said yesterday.

The SingTel-Cable & Wireless HKT talks were announced Jan. 24 by Cable & Wireless plc [CWZ], the global telco that owns 54 percent of the Hong Kong carrier. If successful, they would create an Asian giant with annual revenues of about pounds11 billion with operations in China, Indonesia, Thailand, Australia, Vietnam and the Philippines.

Murdoch's company was among the first to recognize the potential of combining content and transport operations in Asia. His Star TV is an Asian and Indian gold mine and recently inked a deal with Cable & Wireless HKT to provide interactive digital-TV services. News Corp. has $14 billion in annual revenues. SingTel is spending about $900 million on network upgrades annually and has invested $2.4 billion in 62 joint ventures. Paul Coe Clark III