Murdoch Aims to Start Business Channel in ’05

News Corp. Chairman and Chief Executive Rupert Murdoch told reporters Tuesday that he hoped to launch a business news cable channel by the summer.

Murdoch previously indicated an interest in the business channel but had disclosed few details, including the intended time frame for the launch.

Speaking to reporters after the annual shareholder meeting of Fox Entertainment Group Inc., News Corp.’s entertainment subsidiary, Murdoch said he saw an opportunity for a new cable business news channel by offering more “positive” programming than was currently available.

“I think CNBC is a pretty disappointing channel at the moment,” Murdoch said.

Last month CNN announced that it would shut down CNNfn, its struggling financial news network, after nine years of going up against CNBC.

Murdoch also said he planned to meet soon with media investor John Malone, who recently moved to increase his voting stake in News Corp. to 17% from 9%. News Corp. adopted a “poison pill” defense strategy after Malone’s transaction, but Murdoch said his conversations with Malone continued to be friendly.

Separately, Standard & Poor’s said it would add News Corp.’s stock to its benchmark S&P; 500 index after the close of trading Dec. 17. The move was expected after News Corp.’s reincorporation in the U.S. and its listing on the New York Stock Exchange last week.

S&P; said it would announce which stock would be removed from the 500 index about three to five business days before News Corp. was added.

As part of the process, News Corp.’s shares will be removed from the ASX stock index in Australia.