Rupert Murdoch must have a hell of a strategy, because what he’s doing doesn’t seem to make a damned bit of sense. Yesterday, word got out that he is taking the Ottaway Newspaper chain off the market. With declining newspaper valuations– not to mention that Ottaway is one of the most profitable pieces of the Dow Jones empire (at least before they chopped it with a divestiture in late 2006)– this is probably not stupid. But, ValleyWag suggests that Murdoch is interested in picking up a piece of former internet giant Yahoo!.
Didn’t the Aussie learn something about new media when he bought MySpace, only to have it eclipsed almost immediately by Facebook? Yeah, smart. That was $500 million well-spent. So, now he’ll go after a Web 1.0 has-been, for some purpose that only he can understand. He’s either a genius or a complete moron. Buying MySpace and Yahoo! (which trail Facebook and Google) is like rooting for the Chicago Cubs or the Boston Bruins. You have to know that you’ll never hit the top.
But, Murdoch’s the rich one, not me. So, grain of salt and all that.