Murdoch says News Corp near to new video deal

NEW YORK - Media conglomerate News Corp is close to a deal to provide programming for a new video service Verizon Communications plans to launch this week.

"We are 99 per cent there," News Corp chief executive Rupert Murdoch said, referring to a deal that would likely include channels such as FX, Fox News and the Fox Network.

He declined to discuss details of the talks or any terms.

Starting Thursday, Verizon will formally offer its video service, known as Fios, in Keller, Texas. The telephone carrier plans to make Fios available to 3 million customer homes this year.

Murdoch also said the he sees the company's revenue its from internet businesses topping US$500 million ($725 million) in five years.

In recent months, News Corp has bought Web properties including gaming network IGN Entertainment Inc, sports company Scout Media and Intermix, owner of the popular MySpace.com social networking site.

Those deals come as New Corp aims to cash in on an online advertising boom that has propelled internet media and search companies Yahoo and Google.

"The sky is the limit," Murdoch said of the potential for internet revenue.

"Certainly we would see revenue over US$500 million (and) we would hope US$1 billion. But it will probably be somewhere in between there."

Separately, Murdoch said he was still open to talks regarding the unwinding of the stake that John Malone's Liberty Media Corp holds in News Corp.

Last Month, News Corp extended the expiration date of its stockholder rights plan, or poison pill, in response to Liberty Media amassing a roughly 18 per cent stake in the company.

- REUTERS