Rupert Murdoch’s Fox Corporation has bought WarnerMedia’s celebrity news and gossip brand TMZ as it looks to invest in programs that require live or same-day viewing.
The tabloid, founded by Harvey Levin and has more than 200 employees, will operate under the cable TV company owned by Rupert Murdoch, who owns well-known tabloids such as The New York Post and The Sun in the UK.
Fox Corp, run by Lachlan Murdoch, has bought entertainment and gossip brand TMZ.Credit:Getty Images
Sources familiar with the deal, who were not authorised to speak publicly, said it was bought for significantly less than the reported $US50 million ($68 million). The sources said the deal, led by Fox Corp CEO and executive chairman Lachlan Murdoch, was made largely due to entertainment news and the synergies the two companies could create.
Television programs TMZ on TV and TMZ Live are already broadcast on network affiliates owned by Fox Television Studios, and TMZ Sports is broadcast on cable channel Fox Sports 1. The acquisition is part of a strategy by Fox Corp to focus on programs that require live or same-day viewing at a time when more people are watching programs at a time of their choice through streaming services.
Fox Corp runs a range of television channels including Fox News, Fox Sports and Fox Business as well as a wagering division, Fox Bet. It was formed following the sale of 21st Century to Fox and is the sister company of News Corporation, which houses newspapers such as The Wall Street Journal, The Times and The Australian as well as tabloids such as The New York Post, The Sun and The Daily Telegraph in Australia.
Mr Murdoch, the eldest son of Rupert Murdoch, said TMZ was an important program for Fox’s television stations and broadcast partners. “The unique and powerful brand Harvey has created in TMZ has forever changed the entertainment industry and we’re excited to welcome them to Fox,” Mr Murdoch said.
Loading
Mr Levin is expected to continue running TMZ’s day-to-day operations but will report to Fox Entertainment’s president of alternative entertainment and specials, Rob Wade. TMZ was created in 2005 and is known for its tabloid approach to news and gossip in the entertainment industry. It was the first to report on the deaths of Michael Jackson and Prince, which helped it gain notoriety in the US.
TMZ’s sale comes at a time when WarnerMedia’s parent company, AT&T, is trying to divest from its ‘non-core assets’. The company is preparing to sell WarnerMedia to Discovery Inc and has already spun off its DirecTV and UVerse businesses.
