Emerging figure in U.S. media

In a sharp contrast to media mogul Rupert Murdoch, a little-know but wealthy Mexican billionaire named Carlos Slim has become a significant stakeholder in the New York Times Company. Unlike Murdoch, who likes a “hands on” approach to his media holdings (New York Post, Dow Jones Company, Wall Street Journal, etc.), Slim indicates that he has no plans to become involved in day-to-day dealings at the struggling newspaper.

The 68-year-old Slim made his fortune by buying inexpensive properties and then turning them into valuable investments. He’s best-known as owner of TelMex, the largest phone company in Mexico. He has begun turning over operation of TelMex to his sons, apparently in a move to begin easing out of decision-making roles. This is consistent with his approach to his 6.4 percent stake in the Times. He has reportedly become quite a philanthropist, too. With holdings near $60 billion, that's not surprising -- but good to hear.

Interestingly, Slim lists Warren Buffett, “the sage of Omaha,” as someone he admires. With New York Times ad revenue down by 14 percent during the first half of this year, perhaps Slim -- like Murdoch at the Wall Street Journal -- will be tempted to offer advice, although it would have to resonate strongly in the ears of the Ochs-Sulzberger families, which apparently still control 70% of the Times.

Newspapers across the country continue their struggles to survive. Gannett Company said last month that they’re cutting some 1,000 newspaper jobs, and closer to home, Lee Enterprises is paring jobs in Montana, Wyoming and South Dakota.

At W$J -- more international news

As a Johnny-come-lately fan of the news coverage and features contained in the Wall Street Journal over the past few years, I’ve been concerned about the 2007 acquisition of the Dow Jones Company (publisher of the Wall Street Journal) by business tycoon Rupert Murdoch.

No wallflower, Murdoch has a reputation for taking charge and meddling in the day-to-day activities of the various journalistic enterprises that he’s bought and controlled.

An unabashed opponent of big media consolidation, I didn’t much like the idea of the W$J having a new owner – especially Rupert Murdoch. I still don’t. But a feature story in the New York Times today, slugged as Murdoch’s Head of Content, assuages my fears…..a little.

It seems that Murdoch’s top lieutenant, 47-year-old Robert Thomson, is making waves as publisher of the paper – and so far, they’re soothing waves. He says parent company News Corporation will plow some $6 million into the Wall Street Journal, allowing the paper to add four pages of international news.

At a time when newspapers are struggling to stay afloat financially, that’s a significant investment. It’ll be interesting to see how things unfold.

Merry Christmas, Rupert

FCC Chairman Kevin Martin is apparently pushing forward with plans to “revise” the newspaper/broadcast cross-ownership rule. If it happens – and he appears to have the votes to swing it – he’ll be able to present Rupert Murdoch and other media barons with a sweet Christmas present.

They’ll have a clear path to owning a TV station and a local daily newspaper in the same market. Current FCC rules don’t allow such cross-ownership. (Of course, Murdoch already has a waiver to the rule and owns the New York Post and the television stations WWOR-TV and WNYW-TV in New York City. And there are other markets, too, that are grandfathered in the sweet arrangement.)

The cross-ownership wobbling is a retrenchment from Martin’s original plan, which would have opened the floodgates for media consolidation. Michael Powell, FCC Chairman in 2003, tried the same thing and got thoroughly pummeled by Congress and the public. Chairman Martin and his supporters are pushing for a December 18 vote, allowing just a four-week period for public comment.

We’re pleased to see Republican Trent Lott and Democrat Byron Dorgan joining forces to inject a bit of accountability into the process. They’ve introduced S 2332, the Media Ownership Act of 2007. It would require a 90-day comment period on any proposed media ownership rule changes. Not only would it delay Martin’s consolidation initiative until 2008, the measure has strong bi-partisan support and would also require hearings on local service.

If the Commission’s experience in Seattle earlier this month is any indication of public disaffection with the notion of more media consolidation, they’re in for a rough ride.

I think Chairman Martin may find a lump of coal under the tree this year.