Murdoch, Packer kill boast 'a compliment', says Fairfax

Murdoch, Packer kill boast 'a compliment', says Fairfax

Australian media giant Fairfax on Monday welcomed a boast by the sons of billionaires Rupert Murdoch and the late Kerry Packer that they had "killed" the group, describing their hubris as a compliment.

James Packer (R) and Lachlan Murdoch (L) attend the launch of the Harper Collins published book "Killing Fairfax: Packer, Murdoch and the Ultimate Revenge," by author Pamela Williams, in Sydney, on July 23, 2013.

Lachlan Murdoch and James Packer last week revelled in the revenge they claimed they had taken on Sydney Morning Herald owner Fairfax -- long a rival of Murdoch's Australian newspapers and the Packer magazine interests -- by stealing its market share of classified ads.

"The greatest compliment a fiercely independent media organisation can receive is condemnation from those who fear free speech and unfailing scrutiny of the rich and powerful," the Herald said in a withering 800-word editorial.

At the launch of the book "Killing Fairfax: Packer, Murdoch and the Ultimate Revenge" last week, it emerged that the young moguls toasted with vodka their success over Fairfax, a company they had been raised from birth to seek revenge on.

"James said, 'I think we killed Fairfax', and Lachlan said, 'I think so, too', and they clinked their glasses," said author and Australian Financial Review reporter Pamela Williams.

In the editorial, printed as a full-page ad from Fairfax chief executive Greg Hywood, the Herald said it did not accept that the billionaires' sons had succeeded in killing the group by investing in rival real estate, car sales and job search websites.

Nor could they claim credit for its problems in the digital age, he said.

The Herald said it was telling that Williams was a Fairfax reporter who was able to write freely about her employer whereas the Murdoch empire rejected internal dissent and Kerry Packer had been intolerant of criticism.

"For 182 years the Herald has exposed corruption, protected the vulnerable, pursued growth for all and embraced an optimistic vision for the nation based on a contest of ideas," it said.

"That Packer and Murdoch can gloat over any potential reduction in media diversity reflects poorly on them."

It said the men rode by chance with some of the recent technological changes which have wrought havoc on newspapers' revenues, "gambling that they could cash in and wreak delicious revenge against Fairfax for daring to expose their families' power and behaviour to unwanted scrutiny".

"With respect, Packer left the media because the power his family sought through it was evaporating and money mattered too much," it said.

"With respect, the Murdoch empire has relied on global film revenue to fund its news media, will rely on TV revenue in future and has used phone-hacking to seek a commercial advantage."

In common with media companies worldwide, Fairfax is facing sliding print advertising and circulation revenues, with speculation increasing Monday that the Herald would soon close its Monday to Friday print runs in favour of digital editions.

Do you like the content of this article?
COMMENT