Opposition leader cedes TV control to News Corp, takes to protest podium

Three days earlier (October 28) Imedi principal owner Badri Patarkatsishvili announced that he was prepared to finance an opposition campaign to force early elections in Georgia. Both News Corp and Patarkatsisvili spokespersons said the agreement was an effort to separate the Imedi broadcast operations from Patarkatsisvili’s political involvement. Said Pompadur, “We manage the station, we will consult with him, but we manage the station.”

Georgians by the tens of thousands crowded into Tbilisi’s center Friday (November 2), in mostly calm demonstration (“…up to 70,000…” – Reuters, “…at least 40,000…” – VOA, CNN, “…around 50,000…” RIA-Novosti, “…more than 50,000…” – AP “…at least 50,000…” BBC). In addition to calls for early elections, protesters demanded the resignation of Georgian president Mikheil Saakashvili. Patarkatsishvili took to the main podium in the early evening saying, “I want to join in your cause.”

Russian news agencies (ITAR-Tass, Regnum) were quick to say News Corp had purchased Patarkatsishvili’s shares in Imedi, which owns a television station, radio station, newspaper and a news agency. Pompadur, speaking with Reuters, said this was definitely not the case: “We act as if we would have 100 percent of shares. It will be for one year."

Patarkatsishvili formed Imedi Media Holding in 2001 after returning to Georgia from Russia where he made a fortune buying and selling automobiles. Russian authorities issued an arrest warrant for him, charging fraud, tax avoidance, general corruption and political activities. And, too, Russian authorities are not pleased that Patarkatsishvili is pals with Boris Berezovsky, another billionaire they’d like to get their hands on.

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News Corp CEO Rupert Murdoch and Berezovsky have a long media deal history. Ten years ago Berezovsky bought a significant share of Russian public television (ORT) when it was privatized and in 1999 a deal was afoot to bring along Murdoch for an ad sales venture. In 1998 Berezovsky and News Corp, in a joint venture Logo-VAZ News Corporation, launched Nashe Radio, followed in 2000 with Radio Ultra. In 2001 they bought St. Petersburg radio station Modern, the frequencies of which now broadcast either Nashe Radio or Ultra Radio.

Russian authorities have sought Berezovsky’s extradition and have been particularly angered by his statements about financing opposition to Russian president Vladmir Putin.

Patarkatsishvili purchased for €106 million (US$ 154 million) the remaining Georgian assets of Metromedia International in August, which once included a mobile telephone operator, a cable television company and radio stations. Metromedia was an early investor media and telecom businesses in the former Soviet Union. Martin Pompadur had been a Metromedia International board member prior to joining News Corp.

Imedi TV has come under fire in Georgia for aggressively critical reporting on President Saakashvili’s government. Gia Nodia of the Caucasus Institute for Peace, Democracy and Development, interviewed by Eurasianet, called the station’s reporting far from balanced.

When making central and Eastern European investments, particularly on the door-step of media-wary Russia, big western media companies tread the political very lightly. News Corp is no different. When the company obtained a television license in Serbia, Mr. Pompadour said the stations’ focus would be on entertainment and “not broadcast news 24 hours a day.” The request by Mr. Patarkatsishvili that News Corp take over management of Imedi Media may have been more likely Mr. Murdoch’s demand that the investment in Georgia stay out of politics.

Clearly News Corp is setting strategic broadcast outposts in central and Eastern Europe, where ad revenues soar and competition generates big audiences. And its partners are uncommonly excited about the opportunities. Said Patarkatsishvili after meeting Rupert Murdoch in September, “Serious investments are anticipated and Georgia will turn into a major regional player in this market.”

In May News Corp bought 100% of Latvian television channel LNT (Latvijas Neatkariga Televizija) and 70% of TV5 (TV Riga), after almost two years of negotiations with owner PolSat. “LNT and TV5 are the beginning of the development of News Corporation's network in our region," said LNT chairman Andris Ekis, who added that News Corp has eyes on Estonia, Lithuania and Belarus.

Big development plans for News Corp depend on ad growth, cable subscriber growth or both. The company’s recent expansions into Latvia, Serbia, Bulgaria, Poland, Turkey and Israel follow this logic just as much as CME’s (Central European Media Enterprises) expansion in Ukraine.

Georgia, however, is a different story. Video International, Russia’s largest and politically well-connected media sales-house, opened an office in Tbilisi in 2005. At the time annual television ad spending in Georgia was estimated at less than US$10 million; growing, but still tiny. Imedi Media was its first client.

Protests in Tbilisi this past weekend focused on pro-Western President Mikheil Saakashvili’s largely unmet expectation of reduced poverty and unemployment rates. Thursday (November 1) he opened an international conference: Building Europe’s East.

Georgian TV channel suspends broadcasts…owner in coup plot allegations - December 27, 2007
Imedi TV suspended broadcasting ‘temporarily’ (Wednesday, December 26) according to a spokesperson, reported by website Civil Georgia. The station has been a political football in the contest between the government of Georgian President Mikhail Saakashvili and billionaire opposition leader Badri Patarkatsishvili. In early November the channel was forcibly closed by authorities and direct management assumed by News Corporation (News Corp), its minority shareholder....MORE

Opposition leader cedes TV control to News Corp, takes to protest podium

Two days before Georgians by the tens of thousands took to the streets protesting their government, News Corp executive vice president Marty Pompadur told a press conference in the Georgia capital Tbilisi that the company has taken over management of Imedi TV and radio. followup(1), comments(0)

Two days before Georgians by the tens of thousands took to the streets protesting their government, News Corp executive vice president Marty Pompadur told a press conference in the Georgia capital Tbilisi that the company has taken over management of Imedi TV and radio.
followup(1), comments(0)