Malone move casts shadow over Murdoch succession, Chris Tryhorn, The Guardian, Thursday January 22, 2004

Malone: speculation he is planning takeover bid for News Corp

Questions were raised today about the future of News Corp after Rupert Murdoch's sometime-ally and sometime-foe John Malone became the second largest voting shareholder in the company through a shock overnight deal.

Mr Malone, a notoriously shrewd dealmaker who made his money in cable TV and owns QVC shopping channel and half of the Discovery network, increased his stake to 9%, a major change for News Corp as Mr Murdoch has never before had a shareholder with almost one third as many votes as him.

The deal immediately raised questions about Mr Malone's plans - some analysts have speculated as to whether he is planning a takeover bid and whether the move could scupper Mr Murdoch's succession plans involving his sons James and Lachlan.

Others believe it could be a sign of a new and formidable alliance between the two moguls.

Malone's company, Liberty Media, now holds 17% of News Corp's ordinary equity, exceeding the Murdoch family's 14%.
Analysts said Mr Malone might be able to outvote the Murdochs, who control about 30% of the voting stock, if he chose to swap more of his holding for voting shares.


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