News Corp.s Fox Weighs Late-Night Show With OBrien
Feb. 2 (Bloomberg) -- News Corp.s Fox is weighing whether to start a late-night show with Conan OBrien, a move that would put the network into competition with NBC and CBS.
Before making a decision, News Corp. would need to be fairly confident the show could make a profit, Chairman and Chief Executive Officer Rupert Murdoch said on a conference call today. He said the company is giving it a lot of thought and hasnt begun negotiations with OBrien.
One consideration is whether to air OBrien at 11 p.m. to capture the lead-in audience provided by 10 p.m. local newscasts. That would require stations to displace existing programs, Murdoch said. Foxs network schedule ends at 10 p.m. in most time zones, and about 60 percent to 70 percent of its stations could carry a late-night show, a person with knowledge of the situation said on Jan. 22.
Our affiliates tend to run syndicated programming from 11 to 11:30, most of them profitably, Murdoch said. Itll take time to adjust. If we were to decide to go ahead and do it and do it at 11 oclock, rather than at 11:30, immediately, Im sure wed have some difficult negotiations.
A move to Fox would pit OBrien, 46, against Jay Leno, who returns to The Tonight Show on March 1 following NBCs failed experiment with a prime-time talk show. CBS airs Late Show With David Letterman at 11:35 p.m. in most markets. ABC, which runs Nightline at 11:30 p.m., has said it isnt interested in OBrien.
OBrien hosted Tonight for seven months before leaving NBC last month, after refusing to move the show to a later time to make room for Lenos return at 11:35 p.m.
Interest in Fox
Rick Rosen, OBriens agent at the William Morris Endeavor Entertainment talent agency, and the comedians publicist, Leslee Dart, didnt return messages seeking comment.
Moving Leno back into late-night was the right business decision, NBC Universal CEO Jeffrey Zucker said today at an event in New York hosted by the New York-based entertainment companys parent, General Electric Co.
OBrien will consider all offers and would prefer to stay on broadcast TV, a person familiar with his thinking said on Jan. 22. He is interested in News Corp.s Fox network, the person said then.
Im sure thereve been some conversations, said Murdoch, who added formal negotiations hadnt been held.
During his The Tonight Show stint, OBrien led much of this season in late night among 18-to-49 year-old viewers, the age group most coveted by advertisers and Foxs key demographic.
News Corp., which reported second-quarter earnings after U.S. markets closed, gained 23 cents to $12.76 at 4 p.m. New York time in Nasdaq Stock Market trading. Class A shares of the New York-based company rose 51 percent last year. Fairfield, Connecticut-based GE rose 60 cents to $16.85.
OBrien, who left NBC after 16 years, walked away with a $33 million payout and $12 million for his staff, a person familiar with the matter said on Jan. 21.
If the program people can show us that we could do it and be fairly confident about making a profit on it, wed do it in a flash, Murdoch said of a possible show with OBrien, a former writer for Foxs The Simpsons. Were giving it a lot of thought and a lot of examination.