A spokesman for Kirch declined to comment. Linking up with Kirch would create Europe's biggest TV alliance, straddling Italy, Germany, Spain and the United Kingdom. Murdoch and Mediaset would get a foothold in Germany's potentially lucrative market, Europe's largest with more than 33 million households owning televisions. Leo Kirch has conceded that DF1 has lost about 1.4 billion marks since it began broadcasting in 1996 and attracted only a quarter of the customers it expected. In another move, Murdoch is said to be seeking a 40 percent stake in Telecom Italia's Stream pay-television unit in an effort to expand his sports broadcasting kingdom.
Stream transmits Italian soccer games.
This latest News Corp. plot to acquire yet another piece of the global sports market is being criticized by Italian politicians and soccer fans alike. Telecom Italia plans to retain a 51 percent stake in Stream after the sale. A decision in the sale of Stream shares could be reached by the end of this week. The sale of nearly half of its Time Warner shares is part of a business restructuring plan by Itochu, and according to the company, doesn't affect its plans to expand cooperation with the U.S. media giant.