Murdoch backs Beijing's 2008 bid

Murdoch says via video that he thinks Beijing winning the Olympics would be "wonderful"

In this story: Prospects best in China, India Murdoch "frustrated" by pace of GM talks RELATED STORIES

By CNN's Alex Frew McMillan

HONG KONG, China (CNN) -- Media mogul Rupert Murdoch on Tuesday threw his backing behind China's bid for the 2008 Olympic Games.

Murdoch also said he does not anticipate problems with regulators over News Corp's bid for DirecTV in the United States.

The International Olympic Committee votes July 13 on which city will host the 2008 Olympics. Beijing is the front runner to land the event

"As far as 2008 [goes], I think it would be a wonderful thing if Beijing had it for many, many reasons," Murdoch said, addressing the CLSA Investors' Forum in Hong Kong via video from New York.

China getting the games would be good "if only the added incentive it would give people in Beijing to clean up the environment even faster," he added.

The other contenders are Paris, Toronto, Osaka and Istanbul.

Prospects best in China, India

The News Corp. chairman has been criticized for taking an overly pro-Beijing stance on issues such as press freedom. His son James also caused a furor with recent critical remarks of the spiritual movement Falun Gong.

Murdoch, with wife Wendi Deng

Rupert Murdoch said Tuesday that Asia had the biggest potential for News Corp. to roll out pay-television services. He said prospects were particularly good in India and China.

News Corp. owns a 38 percent stake in China's Phoenix Satellite, the largest independent broadcaster in the country. The lack of cable infrastructure and huge population make both China and India, where News Corp.'s Star service dominates, hugely attractive.

Murdoch said he did not know enough to comment on the worsening relationship between the United States and China. Diplomatic ties have been tense since a collision between a Chinese fighter and a U.S. spyplane on April 1.

But press reports of worsening relations are overdone, the head of the biggest publisher of English-language newspapers said.

"What I do know, more than quite a lot of people, is you shouldn't believe everything you read about it," Murdoch said. He added that Sino-U.S. ties are "close and trusting," dating to the previous Bush administration.

Murdoch "frustrated" by pace of GM talks

News Corp. is readying a bid for General Motors Corp.'s stake in Hughes Electronics Corp., parent of DirecTV.

News Corp wants to enter the U.S. satellite market, which is growing at 3 million subscribers a year.

DirecTV's 10 million subscribers would round out Sky Global Network's worldwide satellite holdings, which also span Asia, Europe and Latin America.

But discussions have faltered over price and the amount of control News Corp. would take.

In late April, the company sweetened its offer and landed $3 billion in cash from Microsoft Corp. It has dropped the stake it would take in Hughes to 30 percent, from 35 percent.

Negotiations with GM are proceeding, Murdoch said Tuesday.

"I'm encouraged by how productive those talks have been, though frustrated by their slowness," he said.

U.S. Republican Senator John McCain last week said the deal required regulatory scrutiny. McCain noted that the deal could lead to "a consolidation of power the likes of which this country has not seen since William Randolph Hearst."

Murdoch sought to downplay any tension. He said McCain's role as chairman of the Senate commerce committee would require him to scrutinize the acquisition.

But Murdoch said he did not expect antitrust opposition from U.S. regulators.

"I've spoken to Senator McCain, who is a friend of mine at any rate," Murdoch said. "He said he has no position on this at all."

General Motors was in fact attracted to talks with News Corp. because it was worried about delay and uncertainty with other partners.

"There are absolutely no rules or regulations against what we are prosing here," Murdoch said.

News Corp. already faces stiff competition from other large media companies such as Viacom, Disney and CNN parent AOL Time Warner, he noted.

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