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Murdoch to Buy 2nd Half of Fox for $325 Million

September 23, 1985|From Associated Press

Publisher Rupert Murdoch, who bought half of 20th Century Fox Film Corp. six months ago for $250 million, agreed today to buy the rest of the studio from Denver oilman Marvin Davis, a spokesman for Murdoch said.

Murdoch will pay $325 million to Davis' holding company, TCF Holdings Inc., for the remaining 50% of the studio and its valuable film library.

Davis will retain TCF's stakes in expensive resorts in Pebble Beach, Calif., and Aspen, Colo., plus other real estate, including 2.7 acres of land on the Fox property.

"The deal has been done," said Howard Rubenstein, a spokesman for Murdoch, the Australian-born financier who recently became a U.S. citizen to overcome federal rules limiting the ability of foreigners to own U.S. broadcast properties.

Murdoch had initially sought to acquire all of Fox last year, but Davis demurred and Murdoch settled for half in March.

Davis was brought in as a partner in TCF Holdings, Fox's parent, because the studio was strapped for cash due to heavy losses caused by poor showings at the box office.

Murdoch in March paid $162 million in cash for half of TCF Holdings, and gave the studio an $88 million advance.

For the nine months ending May 25, the company lost $80.1 million on revenues of $468.1 million. In fiscal 1983, the company lost $89.7 million.

However, this summer Fox had a big hit in its movie "Cocoon," which has grossed more than $70 million.

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