ARE MCI AND NEWS CORP. SQUABBLING?
A year ago, they were going to conquer the world. Now a joint venture funded by MCI and News Corp. to beam satellite-TV signals to America appears to be coming undone. Friction between the two companies has increased in recent weeks, according to company sources. News Corp. Chairman Rupert Murdoch is even said to be seeking partners to invest in his $2 billion American Sky Broadcasting Co. The reason: Murdoch would like the funds to reduce News Corp.’s stake in the venture, sources say. In May 1995, MCI said it would invest $2 billion for a 13% stake in News Corp., as well as becoming its partner in the ASkyB satellite program. As part of its investment, MCI gave the venture the spectrum license it had bid $682 million to win an FCC auction. The partners have had frequent disagreements over the pace and programming for the project, sources at both companies say. Late last year, MCI pulled out of ASkyB’s program to provide data transmission over its satellite, forcing News Corp. to reva
