View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Media Business
November 18, 2008

Ex-News Corp exec: Downturn will be ‘very, very ugly’

By Paul McNally

The outgoing chairman of News Corp‘s European business, Marty Pompadur, has warned that the economic downturn will have a “very, very ugly” effect on the media – and could force some companies to put themselves up for sale.

Pompadur, who resigned from the News Corp board last week after more than 10 years as one of Rupert Murdoch’s closest lieutenants, told the European Media Leaders Summit in London that the impending recession would be “pretty deep and pretty long”.

“As I look at what’s going on globally, in the United States, Europe and the Middle East, it’s very, very ugly,’he said yesterday.

“It’s not good out there. They’re talking about a recession – I hope they’re not talking about something worse than that.”

As stock values tumble, Pompadur predicted that a small number of media companies would change hands.

“If a company has a lot of debt they’re in trouble,’he said. ‘Companies that are diversified with several different profit centres have a better opportunity.

“Those companies that are private or controlled by families have a better opportunity to survive in this kind of environment and prosper.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

“I think there will be some companies that are forced to sell because they can’t meet their debt obligations, but I don’t think we’re going to see a lot of them.”

Pompadur – who began his media career in 1960 with a 17-year spell at ABC in the United States – said the newspaper business was in “terrible shape”.

“I have a 19-year-old daughter and she has never read a newspaper and never will but she knows more about what’s going on in the world than I do,” he said.

“Just looking at the newspaper business, they’re in terrible shape and circulation and advertising continue to decline.”

But he added: “Everybody’s been writing off television for some time and I don’t agree with that.

“I think there will always be a need for mass-market. I see the television networks continuing.”

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network