From layoffs, to a bankruptcy filing to share prices cut in half, it’s been a tough year for big media companies.
So, who’s the biggest loser of all the titans of media in 2008?
The Tribune newspaper, with $13 billion in debt, filed for bankruptcy earlier this month. With that big implosion, you’d think that real estate mogul Sam Zell, who bought the Tribune just a year ago for $8 billion, would be this year’s biggest media loser. But in fact, it appears Tribune employees felt the heartache more than Zell, according to Business Week.
And, according to Silicon Alley Insider, there were plenty other media moguls who saw a significant hit to their financial wealth.
Of all the big media executives feeling the pain the most, Viacom CEO Sumner Redstone was declared by SAI as the “biggest media loser of the year.”
Earlier this December, Viacom, which includes, among other facets, MTV, VH1 and the Paramount
movie studio, announced that it would cut about 7% of its workforce, or about 850 employees, and freeze salaries. But Redstone’s problems are far deeper than what happens at his media conglomerate.
According to SAI: “Not only is Sumner getting divorced, but this
fall he also lost $3 billion worth of Viacom and CBS stock and $800
million in a money-losing bet on Midway. According to The New York Times, Sumner may no longer even be a billionaire. Originally, we thought this meant he’d lost more than $4 billion, but Forbes tacks another $3.2 billion onto that and suggests that Sumner’s net worth has fallen by more than $7 billion.”
Ranked at No. 2 is Charlie Ergen:
LOSS: $6.1 Billion
The richest media mogul you’ve never heard of, former pro poker player Charlie Ergen,
is on a losing streak. The billionaire head of satellite TV company
EchoStar Communications saw his net worth drop from $8.1 billion to
$5.9 billion, thanks to September’s market crash. But it didn’t stop
there. According to Forbes, Ergen’s net worth is down $6.1 billion for the year as a whole.
Ranked at No. 3 is Rupert Murdoch:
LOSS: $3.95 Billion
Rupert Murdoch‘s nearly $4 billion drop in News
Corp. stock didn’t stop the Australian CEO from paying a rumored
$100,000+ for his wife’s 40th birthday party in early December. And why
not? Just a rounding error.
Ranked at No. 4 is Barry Diller:
LOSS: $3.5 Billion
It’s a good thing Barry Diller‘s such a fan of
inexpensive transportation, because he may want to start saving some
cash after the drubbing his massive 117 million-share stake in IAC took
in the market this year. And he might want to ride over to a concert
because Ticketmaster’s stock isn’t doing so great either. It’s price is
down 80% since Diller spun it off in August.
Ranked at No. 5 is John Malone:
LOSS: $1.6 Billion
The Liberty Media chairman owns stock in multiple Liberty tickers
and in Discovery Communications, but his divide-and-conquer approach
didn’t work this fall. As Liberty’s tracking stocks got crushed, John Malone sustained substantial losses. Rupert Murdoch recently indicated he regretted selling DirecTV to Malone, who may now regret buying it.
Martha Stewart, whose Martha Stewart Omnimedia’s stock, is down 65% this year, landed at No. 6, followed by Sam Zell, Cablevision owner Charles Dolan, Arthur Sulzberger, who owns 8% of NYTimes, and Comcast CEO Brian Roberts, at No. 10.
(Image sources: SAI, Cableplease, Businesspundit, Money.cnn)
