News Corp now owns a 7.5% stake in Fairfax, publisher of the Sydney Morning Herald and The Age, but both companies were keen to emphasise that it was not the first stage in a takeover.
Fairfax said in a statement to the Australian Stock Exchange: "Fairfax notes News Corp's statement that the acquisition is an investment and friendly to the existing board. There is every reason for investors to see value in Fairfax and its future."
Earlier in the week, the Australian parliament passed legislation freeing up cross-media ownership and foreign investment.
Fairfax had opposed the new legislation surrounding digital media on the grounds that it would further concentrate ownership rather than help diversity. As well as its newspaper publishing business, Fairfax owns websites including job site MyCareer and the used-car site .
News Corp was based in Adelaide until in 2004, when investors gave the OK to a plan to quit the Australian Stock Exchange and move its headquarters to New York.
Separately, reports say that Murdoch is expected to win permission to extend the "poison pill" defence against Liberty Media chairman John Malone increasing his stake in News Corp.
Last week, Liberty Media confirmed it was in talks with Murdoch about swapping its 19% stake in Murdoch's News Corporation for a controlling stake in News Corp's US satellite TV business DirecTV.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
