Murdoch Junior to buy into Packer media empire

Sydney, Jan 21 : Lachlan Murdoch, the elder son of media baron Rupert Murdoch who had resigned as an executive with his father's News Corporation in 2005, is all set to make a return to the media industry today by signing a two billion-dollar-plus deal to privatise James Packer's "Consolidated Media Holdings" (CMH).

An announcement on the deal is likely to be made to the Australian Securities Exchange later in the day.

It is believed Murdoch, who set up a private investment fund after resigning from News Corporation, will become the newly-privatised vehicle's Executive Chairman.

He has raised the capital to fund the deal outside News Corp, which owns the company that publishes national daily The Australian.

As part of the deal, Murdoch and CMH's current deputy chairman James Packer are expected to each take a 50 per cent stake in a joint venture vehicle to run the company. The deal marks yet another step by Packer away from the media empire that was long the hallmark of the Packer dynasty.

The new joint venture will include CMH's 25 per cent stakes in Foxtel and PBL Media, a 50 per cent stake in Fox Sports and 27 per cent of online recruitment firm Seek, reported the paper.

PBL Media owns the Packer family's one-time flagship Nine Network and ACP Magazines, as well as stakes in online ventures such as "ninemsn" and "carsales.com.au".

ANI