For News Corp., Newspaper Business Loses Its Value

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By: Anatole Kaletsky | Reuters via The New York Times

LONDON — Rupert Murdoch, the chairman of News Corp., conceded defeat this week in his battle with Google and the Internet, adversaries even more powerful than the British government.

Mr. Murdoch decided two years ago to create a pay wall for The Times of London that could not be penetrated by Google and other “parasitic” search engines, as he called them. In effect, the paper was cut off completely from the public Internet. As one of Mr. Murdoch’s newspaper managers later described that strategy: “Rupert didn’t just build a pay wall; he circled it with barbed wire, dug a moat around it and put crocodiles in the moat.”

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