News Corp freezes investment

Rupert Murdoch has called a halt on spending at News Corporation as the company gears up for its largest ever deal - buying US satellite broadcaster DirecTV.

Rupert Murdoch has called a halt on spending at News Corporation as the company gears up for its largest ever deal - buying US satellite broadcaster DirecTV.

He has asked executives to put all other investments on hold as the potential $40bn acquisition is thrashed out.

Financial staff are thought to be considering the sale of some News Corp assets in order to buy the General Motors-controlled company.

The investment slowdown follows News Corp's decision last week to cut back on hiring new staff and spending on technology.

News Corp also wants to reassure investors after pledging the holding company for its digital interests, Sky Global Networks, to an initial public offering. Sky Global, valued at $40bn, would be the largest IPO in media history.

Executives stressed that there was no need to sell company assets to fund borrowing. They added that Murdoch had put aside more than $2.3bn to internet projects in less than a year.



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