Financial Times FT.com

Murdoch sights more internet targets

By Aline van Duyn in New York and Chris Nuttall in San Francisco

Published: August 19 2005 02:24 | Last updated: August 19 2005 02:24

Rupert Murdoch has put two more internet companies on News Corporation's list of desired acquisitions: Blinkx and IGN Entertainment, people familiar with the company's plans said.

The media conglomerate has already bought Scout Media, a sports web company, and Intermix, which operates social networking site My-Space.com. Talks to buy video search engine Blinkx are under way. IGN, a video gaming company considering an initial public offering or a sale, is also under consideration and could be valued at up to $800m, people briefed on its plans said.

Mr Murdoch, chairman and chief executive of News Corp, this year identified the internet as a priority and said the group could spend up to $2bn on acquisitions.

He is willing to pay for the internet companies he sees as essential for growth; Intermix was bought for $580m, more than other media groups were prepared to offer.

“We have tens of billions of dollars of asset value in our news, sports and general entertainment businesses,” Mr Murdoch said last week. “While we monetise this value daily in the form of our TV shows, channels, films, books [and] newspapers, our priority now in truth our mandate is to perfect a plan that will monetise them across the world on the internet.”

Mr Murdoch has made it clear that he plans to move fast. In less than a month, the acquisitions of Scout Media and Intermix have increased News Corp's overall online audience from 16m unique users a month to close to 50m.

“Over the next several months expect additional announcements as we work to achieve our goal of building a distinctive interactive network, one that perhaps redefines what is meant by an internet portal,” Mr Murdoch said last week.

IGN would offer News Corp online possibilities through its games network and businesses targeted at men aged 18-34. The IGN and GameSpy websites provide news on the video games industry, while Rotten Tomatoes and Filmforce do the same for movies.

In June, IGN acquired Askmen.com, a male lifestyle site, adding another 3.8m visitors to a network that reached more than 24m users in March, according to Media Metrix.

As well as these four targets, News Corp is considering numerous other small internet acquisitions. It recently made a $90m bid for Australian online property-listing site real-estate.com.au.

News Corp declined to comment on whether it was in talks with IGN.

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