MCI to acquire stake in News Corp.

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MCI Communications Corp. and Rupert Murdoch's News Corp. will join to create and distribute electronic services worldwide in education, information and entertainment fields. MCI said it will invest up to $2 billion in News Corp. to become that company's largest shareholder. In addition, each company will invest $200 million in the joint venture, to be headed by Mr. Murdoch and Bert C. Roberts, MCI chairman-CEO. The two companies cited the advantage of leveraging the broadcast, satellite, programming and publishing resources of News Corp. and the customer base and intelligent networks of MCI. Mr. Murdoch said these are the right "building blocks ... to offer new-media services on a global scale." Said Mr. Roberts: "Together we can produce television, movies and publications, provide broadband network and direct broadcast capabilities virtually anywhere; and leverage effective sales forces and brand names known around the world."

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