ISTANBUL May 24 Rupert Murdoch's News Corp
has dropped out of the race to buy ATV television from
Turkish group Calik Holding, but Time Warner Inc and
Dubai-based Abraaj Capital remain interested in bidding, sources
close to the process have told Reuters.
Calik, which also has interests in energy and finance,
appointed Goldman Sachs in January to manage the sale of a
controlling stake in its entire media unit, which includes the
Sabah newspaper and is partly owned by Qatar.
But while the ATV-Sabah unit could be worth over $1 billion,
ATV and Sabah were also being offered separately, sources close
to the process said in February.
"Only Abraaj and TNT (Time Warner) are left in the process.
They are only negotiating over the television," one of the
sources said on Thursday.
"Abraaj wants to buy a majority stake but they want Calik to
still have some shares, while TNT wants the whole in a deal in
which the Qataris will keep their stake," he added.
A unit of the Qatar Investment Authority, Lusail
International Media Co, owns a 25 percent stake in ATV-Sabah,
according to Calik's website.
News Corp, Time Warner, Abraaj and Calik all declined to
The Qataris are not selling their stake, the sources said
previously, which means they would have to be involved in any
move to separate out the TV and newspaper businesses.
However, the sources said it was possible the sale process
could also fail due to the declining value of media assets, the
time it would take to earn a return on the investment and
concerns about political influence on the media in Turkey.
News Corp already owns Fox TV in Turkey and Murdoch told
Prime Minister Tayyip Erdogan at a meeting late in March that
News Corp aimed to increase its investment in the country,
according to government sources.
Calik Holding paid $1.1 billion in 2007 for ATV-Sabah, one
of Turkey's largest media groups.
Ahmet Calik, chairman of the holding company, is regarded as
close to the ruling AK Party's leadership, and that deal gave
the socially conservative, economically liberal government an
influential friend in the media.
Erdogan's son-in-law, Berat Albayrak, is the chief executive
of Calik Holding, and his brother Serhat Albayrak is the general
manager of the media unit.