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Fox Earmarks $100MM for Business Channel
News Corp.‘s internal plans to launch Fox Business Channel are surprisingly cautious, writes Fortune. The company is earmarking $100 million in initial capital for the business channel, which will go head-to-head with CNBC.
The channel, slated to launch in October, is in the process of hiring about 400 people, according to a News Corp. insider.
For News Corp., $100 million is merely a drop in the bucket, and suggests that the company may be wary about entering too deeply into the cable business news, an industry that has seen high-profile flops like CNNfn and the Financial News Network.
“$100 million is not really much to launch a typical cable network,” Derek Baine, an analyst at Kagan Research, is quoted as saying. News Corp spent $400 million to launch Fox News, and it took about five years to break even.