The Dark Side of Murdoch's Russian Billboard Business

[RandySF]

Pieces of Rupert Murdoch's empire continue to fall away. Last month, as British police continued to investigate phone-hacking claims against the News of the World, the media magnate sold off his Russian billboard company, News Outdoor, for around $270 million, less than a fifth of the value it had three years ago. The sale marked a quiet end to one of Russia's oddest corporate sagas, and looking back, the troubles of the British tabloids seem almost tame compared with the murder and corruption scandals in the Russian billboard market, which Murdoch's company dominated for nearly a decade.

By all accounts, the unexpected break for Murdoch in the Russian ad market came in 2002 after the assassination of Vladimir Kanevsky, then the billboard king of Moscow. In February of that year, at an intersection near the Kremlin, a man in a black ski cap walked up to Kanevsky's car and pumped five rounds into his head and chest. Because of a weapons check at the security firm that protected him, Kanevsky's bodyguards happened to be unarmed that day, and the killer managed to escape. But aside from this peculiar detail, the fact of the murder was not extraordinary. Kanevsky had a lot of enemies, and hired hits were still a fairly common way of resolving disputes in Russia, which had not yet tamed the capitalist free-for-all that followed the Soviet collapse. Between 1996 and 2004, at least 11 Russian advertising executives were killed or wounded in contract hits, with car bombs and knifings among the methods used. Only two of those crimes have been solved.

For Murdoch, the killing of Kanevsky presented a surprise opportunity. The media mogul had acquired News Outdoor less than two years earlier, in November 2000, from a group of Russian businessmen, and had given the reins to Maxim Tkachev, a seasoned operator in Moscow's business circles. Tkachev had started out producing and selling bootleg CDs of bands like Deep Purple and Pink Floyd in the late 1980s, and went on with a group of college friends to create the billboard firms that Murdoch would later acquire. Less than two years after the deal, Tkachev had made News Outdoor the leading player in practically every major Russian city except for Moscow, where Kanevsky's company stood in the way.



http://www.time.com/time/world/article/0,8599,2085878,00.html#ixzz1Tw1cg2oK

[ThoughtCriminal]

1. Ah, Randian Paradise

Don't let those silly Marxist regulations that would restrict assassinating competitors get in the way.