Packer and Murdoch busy in a game of chess

BANGALORE: What is common between Kerry Packer and Rupert Murdoch, besides being Australians and media tycoons? India and Information Technology. Within a span

of ten days, both Murdoch and Packer, two of the richest men in Australia, came

visting India (and they did not go to the see the Taj Mahal) with an aim of

betting their money on the Indian IT entrepreneurs.

These tycoons of the media world seem to have suddenly realized the dynamism

of information technology in India and have started setting up Venture Capital Funds (VCFs) and making

investments. And, this week, Packer's move to invest in four companies

through its venture capital fund KVP Venture has created a buzz in the IT

industry.

The latest business move by these businessmen will witness their legendry competition

being carried over to India, albeit in IT. These men have been competing

fiercely in the media businesses in Australia, where Packer claims a higher

market share. During Murdoch’s visit to India, the owner of Star TV, had

announced that he would invest about $200 million in the IT industry in India.

While Kerry Packer has set up a VCF of $250 million (Rs

1,100 crore) and has said that he would invest in "high-growth"

convergence and biotechnology ideas. Now that Packer has identified four

companies in India, we have to wait for Murdoch’s move in similar direction.

Anyway, a war can be expected between the two entities, like in the case of

pay TV in Australia. Victories in the past 12 months have confirmed Packer as

the richest man in Australia and the dominant force in pay TV. He blocked

Murdoch's attempt to stage a rival league competition and trumped him in a deal

with the pay TV company Australis Media. By leading a $200-million bailout

package for Australis, Packer's company Publishing and Broadcasting (PBL) is

positioned to become the major shareholder in the company. This followed the

collapse of Murdoch's attempts to buy into Australis, but not before Foxtel was

committed to an expensive deal to buy programming for the company. Given

Packer's shareholding in the other pay TV operator, Optus Vision, he stands to

gain regardless of which pay TV service wins the biggest share of the Australian

market. At the heart of these moves is the determination of the Packer family to

ensure that the more things change, the more they will stay the same. When the

realms of computing, telecommunications and entertainment begin to converge

through the pipe to the TV set and home computer, changing society's consumer

habits, Packer Inc wants to be firmly in charge. The focus on IT in India may

just be a launch pad towards this goal, the Packers might move over to other

nations as well to reap what is best of them.

Kerry Packer has seen it all. He has come a long way from the days when he

formed his own cricket team after he was refused exclusive TV rights to cricket

matches. Be it sports, entertainment, media or casinos, he is made it big in

everything he has put his money and brain. It’s IT now and he knows best that

India is the place to be in.

With regard to the $250 million venture capital investment, James Packer, son

of Kerry Packer, pointed out that this was their largest venture capital

investment outside Australia, though they had made several smaller investments

around the region. "We think this is the growth country. The intellectual

property here is being recognized world over. And the government is making it a

stable and encouraging place to invest in," he said, adding "But, we

feel India will benefit disproportionately from the convergence."

Well, it is a privilege to know that India has been considered a growth area,

but it should not be considered a war field. Luckily, these players are involved

only in the IT arena in India and not in any other area. We have to wait and see

who will lead the other to newer areas or ideas. It is more a game of chess.

Well, whatever will be the case, in the bargain, we Indians will be winners to

get a taste of their cold cyber war, as each of them would try to out do the

other.

Who said Year 2000 is a bug? For us Indians, it is a blessing. In the first

three months itself, Indian IT industry has received tremendous boost from the

visits of some of the top global corporate leaders and heads of government.