With the schedule revamp falling flat, Murdoch is likely to be considering more drastic action. TalkTV racked up losses of £34m in its first three months on air as the company generated significant startup costs and splashed out on new studios at its London Bridge headquarters.
While TalkTV has avoided the ad boycott levelled at GB News, profitability is still looking elusive.
DeGroote plays down financial concerns, saying TalkTV is “just a small rounding error” in the context of News Corp’s wider business. The station is drawing on a £20m overdraft facility guaranteed by its parent company.
But with Murdoch facing high costs elsewhere, including $787.5m (£623.1m) to settle a lawsuit with Dominion Voting Systems over false vote-rigging claims aired on Fox News, he cannot keep losing money indefinitely.
“News Corp is actually in rude health, so TalkTV can wallow in obscurity,” says DeGroote. “However, there needs to be a path to profit, or break even, or shareholders will question the rationale.”
Complicating matters was the coronation of eldest son Lachlan as Murdoch’s successor in September. While Rupert ultimately still holds the power, his son is likely to be fine-tuning his own vision for the empire.
Unlike his siblings James and Elizabeth, Lachlan has not lived in Britain and is thought to have less interest in the market.
“Lachlan does not have an affinity with the UK,” says the former executive. “He’s very focused on the States and Australia and he may go: ‘Why are we paying vast sums of money for something that’s not working?’”
Cost considerations will be front of mind as Piers Morgan’s contract, worth £50m for his work across various News UK outlets over three years, comes up for renewal in the coming months.
Morgan is by far the biggest star on TalkTV, and has landed major interviews with figures including Donald Trump, Cristiano Ronaldo and Kanye West.
