{"id":63667,"date":"2015-09-14T12:00:27","date_gmt":"2015-09-14T11:00:27","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=63667"},"modified":"2015-09-14T01:02:41","modified_gmt":"2015-09-14T00:02:41","slug":"rupert-murdoch-and-fox-take-control-of-national-geographic-for-a-725-million-price-tag","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2015\/09\/rupert-murdoch-and-fox-take-control-of-national-geographic-for-a-725-million-price-tag\/","title":{"rendered":"Rupert Murdoch and Fox Take Control of National Geographic for a $725 Million Price Tag"},"content":{"rendered":"

Read below the two pieces: <\/em>The Washington Post and <\/em>The New York Times<\/p>\n

*******************************************************************<\/p>\n

National Geographic and Fox Form a Commercial Media Company<\/em><\/strong><\/p>\n

Emily Steel – The New York Times<\/em><\/strong><\/p>\n

9 Sep 2015 – <\/em>Since 1888, the National Geographic Society has stood for science, discovery and storytelling. Its yellow-bordered magazine has served as the ultimate stage for award-winning photography, depicting the wonders of the world, and the group has supported pursuits as diverse as the underwater explorations of Jacques-Yves Cousteau and Jane Goodall\u2019s study of chimpanzees in Tanzania.<\/p>\n

\"A<\/a>

A panel discussion of “National Geographic Channel – Wicked Tuna” at a TV critics event in 2014.
Credit Frederick M. Brown\/Getty Images<\/p><\/div>\n

Now, the nonprofit organization plans to continue that mission, backed by the Murdoch media empire.<\/p>\n

In a deal announced on Wednesday [9 Sep] and valued at $725 million, the National Geographic Society and 21st Century Fox<\/a> are creating a for-profit joint venture that encompasses the National Geographic Channels cable television group along with National Geographic\u2019s other properties. That includes its magazine and other print publications, studios, digital media, maps, children\u2019s media, travel, licensing and e-commerce.<\/p>\n

Fox will own 73 percent of the new venture, called National Geographic Partners, and the National Geographic Society will own 27 percent. The two owners will have equal representation on the board and share governance.<\/p>\n

\u201cWhat this really is about is creating a new company with the National Geographic brand at its heart,\u201d James Murdoch, chief executive of 21st Century Fox<\/a>, said in a joint telephone interview with Gary Knell, the chief executive of the National Geographic Society, who will be the first chairman of the National Geographic Partners board.<\/p>\n

The National Geographic Society will continue to operate as a nonprofit organization. The $725 million from Fox will increase its endowment to about $1 billion and allow it to double its investment in science, research and education work.<\/p>\n

The deal faced immediate questions over how that science-driven mission of National Geographic would fare now that it was in closer alignment with 21st Century Fox. Scientists have disputed<\/a> comments about climate change<\/a> made by Rupert Murdoch, 21st Century Fox\u2019s executive chairman. Mr. Murdoch recently said on Twitter <\/a>that he was a \u201cclimate change<\/a> skeptic, not a denier,\u201d adding that the United Nations would meet in New York with \u201cendless alarmist nonsense.\u201d<\/p>\n

httpv:\/\/www.youtube.com\/watch?v=3plf1VGlccM<\/p>\n

In response to the concern about conflicting outlooks, executives underscored that the agreement builds upon an 18-year partnership between the two groups for National Geographic Channels, a moneymaking venture of domestic and international cable TV channels available in more than 500 million homes in 171 countries. Mr. Knell said that during that time, Fox had not exerted \u201cany sort of political or editorial interference.\u201d<\/p>\n

They added that Declan Moore, a 20-year veteran of the National Geographic Society, would work as chief executive of the venture. Susan Goldberg, editor in chief of National Geographic magazine, will continue in her role.<\/p>\n

\u201cI don\u2019t think that they would be investing in this brand if it weren\u2019t to keep the quality of what National Geographic stands for,\u201d Mr. Knell said.<\/p>\n

James Murdoch said he was personally committed to continuing the culture and the mission of National Geographic as it has existed. \u201cIt is a creative business we are in, and we are in creative alignment,\u201d he said.<\/p>\n

The partnership between the nonprofit organization and one of the world\u2019s largest media companies comes about a month after the announcement of a partnership between the Sesame Workshop, the nonprofit group behind the children\u2019s television program, and HBO, the premium cable network \u2014 signaling how both types of organizations are wrestling with similar challenges as digital transformation upends the business.<\/p>\n

\u201cThose same sorts of market forces that are changing the dynamics of the media space now, we are not immune to those,\u201d Mr. Knell said. \u201cHow can National Geographic make sure that it has a place at the virtual table for every person interested in what we do?\u201d<\/p>\n

But while the Sesame-HBO partnership<\/a>, which brings first-run episodes of \u201cSesame Street\u201d exclusively to HBO and its streaming outlets this fall, helped ease funding pressures faced by Sesame Workshop, executives and analysts characterized the Fox-National Geographic partnership as more opportunistic.<\/p>\n

\u201dI don\u2019t see this as a defensive move,\u201d Mr. Murdoch said.<\/p>\n

He called the Fox-National Geographic cable television venture \u201cone of the most successful partnerships\u201d that not only paid healthy dividends to the society and to Fox but also created programming that built the National Geographic brand around the world. He said the new company would expand on that partnership, creating a storytelling machine that would feed a proliferation of screens.<\/p>\n

David Bank, an analyst with RBC Capital Markets, said that National Geographic provided Fox with the rights to an unusual collection of material that travels around the world and across digital platforms. He said the National Geographic channels could not only be bundled with Fox\u2019s broader portfolio of sports, news, comedy, drama and other channels, to increase its leverage with TV distributors, but could also be part of a direct-to-consumer streaming offering in the long term.<\/p>\n

\u201cThere are very few entertainment brands that travel cross border with as much brand equity as National Geographic,\u201d Mr. Bank said.<\/p>\n

The deal is one of the first major developments at Fox since James Murdoch was named chief executive in June<\/a>. He said that the deal had been in the works for a number of months and that it was consistent with his strategy to focus the business \u201caround big brands, building platforms around those brands, and making sure those brands matter in an increasingly competitive and digital environment.\u201d<\/p>\n

_____________________________<\/p>\n

A version of this article appears in print on September 10, 2015, on page B1 of the New York edition with the headline: A Media Venture Joins Fox With National Geographic .<\/em><\/p>\n

Go to Original \u2013 nytimes.com<\/a><\/p>\n

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 <\/p>\n

National Geographic Gives Fox Control of Media Assets in $725 Million Deal<\/em><\/strong><\/p>\n

Paul Farhi<\/em><\/strong> – The Washington Post<\/em><\/strong><\/p>\n

\"National<\/a>

A new book, \u201cNational Geographic, the Covers: Iconic Photographs, Unforgettable Stories,\u201d collects some of the magazine’s most famous covers.<\/p><\/div>\n

9 Sep 2015 – <\/em>Ever since it was launched from the temple-like headquarters of the National Geographic Society in Washington in 1888, National Geographic magazine has illuminated the world\u2019s hidden places and revealed its natural wonders.<\/p>\n

On Wednesday, the iconic \u00adyellow-bordered magazine, beset by financial issues, entered its own uncharted territory. In an effort to stave off further decline, the magazine was effectively sold by its nonprofit parent organization to a for-profit venture whose principal shareholder is one of Rupert Murdoch\u2019s global media companies.<\/p>\n

In exchange for $725 million, the National Geographic Society passed the troubled magazine and its book, map and other media assets to a partnership headed by 21st Century Fox, the Murdoch-controlled company that owns the 20th Century Fox movie studio, the Fox television network and Fox News Channel.<\/p>\n

Under the terms announced Wednesday, Fox will control 73\u00a0percent of the operation, called National Geographic Partners, with the balance held by the National Geographic Society. The partnership, based in Washington, will include a portfolio of National Geographic-branded cable TV channels, digital properties and publishing operations, most notably the magazine that has advanced the society\u2019s founding mission \u2014 \u201cthe increase and diffusion of geographic knowledge.\u201d<\/p>\n

The agreement provides a financial lifeline not just for the much-honored magazine, but also for the National Geographic Society itself, the organization\u2019s chief executive acknowledged Wednesday. Like many print publications, National Geographic has been hurt by the onset of the digital era, which has put it on a slow trajectory toward extinction.<\/p>\n

\"National<\/a>

National Geographic magazine\u2019s July 2014 issue. (National Geographic)<\/p><\/div>\n

The magazine\u2019s domestic circulation peaked at about 12\u00a0million copies in the late 1980s; today, the publication reaches about 3.5\u00a0million subscribers in the United States and an additional 3\u00a0million subscribers abroad through non-English-language editions. Advertising has been in steady decline.<\/p>\n

\u201cIt has become apparent that ensuring the future of the society would require something bold,\u201d the society\u2019s chief executive, Gary Knell, said at an all-staff meeting Wednesday. Continuing as a media organization and potentially absorbing future losses, he said, \u201cpresented enormous and real existential risks. We .\u2009.\u2009. truly believe the path we\u2019ve chosen presents the greatest potential upside.\u201d<\/p>\n

In his address to employees, Knell noted that keeping the magazine while cutting costs \u201cwould be a short-term fix for a long-term set of issues.\u201d<\/p>\n

The society first partnered with Fox in 1997 to launch the National Geographic cable channel, and later a fleet of smaller TV channels. The TV channels have grown into the organization\u2019s most valuable assets; the venture had operating profits surpassing $400\u00a0million last year, according to one executive, although the society\u2019s actual dividend from the partnership has not been disclosed.<\/p>\n

Until Wednesday, the magazine and other publishing operations had remained fully under the National Geographic Society\u2019s ownership and direction.<\/p>\n

Although the partners spoke optimistically about the new marketing and promotional potential of their enlarged venture, the news sent shudders through the magazine\u2019s downtown Washington offices. The one-word reaction from one of the magazine\u2019s journalists: \u201cDread.\u201d<\/p>\n

Some of the anxiety stems from the fear of becoming an afterthought in an enterprise dominated by a shareholder, Fox, that operates a company with $29\u00a0billion in annual revenue.<\/a> It also reflects uncertainty about what could happen to the magazine\u2019s image and vaunted journalism under the Murdoch banner.<\/p>\n

Magazine staffers point warily to Fox News Channel and to \u00adMurdoch-owned tabloids such as the New York Post and Britain\u2019s Sun. They also looked closer to home \u2014 to the TV programs produced under the society\u2019s long-running partnership with Fox.<\/p>\n

Some of the programming on the National Geographic Channel has been a source of embarrassment to people at the society and its namesake magazine. Series such as \u201cDoomsday Preppers<\/a>\u201d (about survivalists) and \u201cBanged Up Abroad<\/a>\u201d (featuring \u201choliday horror stories\u201d) have proved relatively popular but have caused discomfort within the organization because they are unlike the magazine\u2019s high-minded articles and photography.<\/p>\n

Even while she hailed the Fox partnership, Susan Goldberg, National Geographic\u2019s editor in chief, was hesitant Wednesday in assessing the society\u2019s TV collaboration with Fox. \u201cFox has acknowledged that they have not always represented the National Geographic brand in some of those programs in a way we loved or even they loved,\u201d she said in an interview.<\/p>\n

Nevertheless, Goldberg said the partnership will bring more resources and distribution muscle to National Geographic\u2019s digital and print operations. \u201cIt\u2019s great news. .\u2009.\u2009. It\u2019s really a doubling down on our journalism and an investment in our journalism.\u201d<\/p>\n

She added: \u201cThere\u2019s always anxiety over any change. .\u2009.\u2009. But holding still and doing the same thing is not a sustainable position.\u201d<\/p>\n

But some of the magazine\u2019s subscribers sounded more concerned; many took to social media to register negative reactions. The outpouring \u201creflects the fear that the needs of shareholders will trump the expectations of [the readers] that National Geographic has nurtured for many years,\u201d said Steve Beck, managing partner of CG42, a consulting firm.<\/p>\n

But Beck said it\u2019s not certain that Fox\u2019s involvement will be a negative. Murdoch\u2019s purchase of the Wall Street Journal and its parent company in 2007 hasn\u2019t hurt the Journal\u2019s quality, he said. \u201cHe acquired them because they have great content. That\u2019s what he\u2019s doing here. National Geographic has a history of developing really good, high-quality content and nurturing a really loyal audience. He and his team see a valuable asset\u201d that can be improved.<\/p>\n

In comments to National Geographic staffers Wednesday, Fox\u2019s chief executive, James Murdoch \u2014 Rupert Murdoch\u2019s youngest son \u2014 expressed his admiration for National Geographic, saying that he has read the magazine since childhood. In an interview, Murdoch said there were no immediate plans to change the publication.<\/p>\n

Knell, the society\u2019s chief executive, said in an interview that the sale will give \u201ca longer runway\u201d to the magazine. Neither Knell nor Murdoch would release data about the magazine\u2019s financial health.<\/p>\n

The society will remain a nonprofit education organization, separately governed from National Geographic Partners. The partnership will be governed by a board with an equal number of representatives from Fox and National Geographic. Declan Moore, chief media officer of the society, will become chief executive of National Geographic Partners.<\/p>\n

Fox\u2019s $725\u00a0million payment to the society will push the organization\u2019s endowment to more than $1\u00a0billion and will allow the organization to double its spending on research, science and other projects, the society said.<\/p>\n

The society said it would create an education center named for the Grosvenor family \u2014 whose members helped found the society and ran it for decades \u2014 and dedicated to improving high school students\u2019 geography skills. It also said that it plans to establish a center for cartography, journalism and photography.<\/p>\n

There was no word on whether the transaction, which has been approved by the society\u2019s board and is expected to close at the end of the year, will lead to layoffs. Representatives from both sides are to meet next week to discuss how all of the organization\u2019s assets will be integrated into the partnership.<\/p>\n

_________________________________<\/p>\n

Paul Farhi is<\/em> The Washington Post‘s<\/em> media reporter.<\/em><\/p>\n

Go to Original \u2013 washingtonpost.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Murdoch is a notorious climate change denier, and his family\u2019s Fox media empire is the world\u2019s primary source of global warming misinformation. One of the missions of the National Geographic Society is to give grants to scientists. The group has supported pursuits as diverse as the underwater explorations of Jacques-Yves Cousteau and Jane Goodall\u2019s study of chimpanzees in Tanzania. What now?<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[58],"tags":[],"class_list":["post-63667","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/63667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=63667"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/63667\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=63667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=63667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=63667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}