The New York Budgets

Tag: The Wall Street Journal

  • Trump may live to regret suing Murdoch for libel regarding Epstein’s birthday card

    Trump may live to regret suing Murdoch for libel regarding Epstein’s birthday card

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    Donald Trump, Jeffrey Epstein and Rupert Murdoch in New York County Supreme edit. © Alan Woodward/The NewYorkBudgets

    Donald Trump has never shied away from a fight. In fact, it’s practically his brand. But in launching a $10 billion libel lawsuit against Rupert Murdoch, Dow Jones, and two Wall Street Journal reporters over a birthday card allegedly sent to Jeffrey Epstein, Trump may have walked into a legal minefield of his own making.

    The lawsuit centers around a Journal story detailing a bizarre 2003 birthday card supposedly authored by Trump to Epstein. According to the article, the note contained several typed lines framed by the outline of a naked woman, hand-drawn in thick marker. The letter reportedly included a third-person conversation between “Trump” and Epstein, with enigmatic phrases such as “enigmas never age” and the cryptic sign-off: “A pal is a wonderful thing. Happy Birthday — and may every day be another wonderful secret.”

    Trump has vehemently denied authorship of the card. In a furious social media post, he declared: “These are not my words, not the way I talk. Also, I don’t draw pictures.” He further asserted the note was a forgery fabricated by “unnamed Democrats,” and called the Journal a “useless rag,” promising “a POWERHOUSE Lawsuit against everyone involved.”

    For Murdoch, 93, and Trump, 78, this isn’t their first confrontation. The media mogul’s outlets — most prominently Fox News and the Journal — were skeptical of Trump during the 2016 primaries before eventually aiding his path to the presidency. Their relationship has since oscillated between strategic alliance and mutual contempt. But this lawsuit could mark a definitive rupture.

    The legal hurdles Trump faces are towering. The landmark Supreme Court case New York Times Co. v. Sullivan (1964) still stands — despite Justice Clarence Thomas’s wish to revisit it. Under Sullivan, public figures suing for libel must prove “actual malice” — that the publisher knowingly printed falsehoods or acted in reckless disregard for the truth. That’s a near-impossible standard to meet when the defendant is The Wall Street Journal, not a tabloid like the National Enquirer.

    Moreover, reports suggest the card came from Department of Justice archives. If so, the Journal’s sourcing may have been both legitimate and well-documented. Dow Jones has vowed to “vigorously defend” its reporting, stating, “We have full confidence in the rigor and accuracy of our journalism.”

    If Trump hoped to intimidate Murdoch into silence or submission, he may have miscalculated. Libel suits, historically, are double-edged swords — especially for the plaintiff. They often invite forensic dissection of the very allegations the plaintiff seeks to bury. Legal legend Roy Cohn, Trump’s onetime mentor, famously advised clients: “Never sue for libel.” The reasons are obvious. Oscar Wilde, Alger Hiss, Gen. William Westmoreland, and Ariel Sharon all sued — and saw their reputations battered further. Some even ended up in prison.

    Trump’s reputation is already uniquely impervious to additional tarnish. A New York jury found him liable for sexually abusing writer E. Jean Carroll. He’s been convicted of 34 felony counts related to hush money payments to adult film actress Stormy Daniels. His boasts about women and his own sexuality — including in the notorious Access Hollywood tape — are publicly etched in American memory.

    So what’s the damage here, really?

    Legal analysts suspect Trump’s motivations may have more to do with uncovering sources through discovery than restoring his name. His lawyers have already requested that Murdoch be deposed quickly, citing his advanced age and reported health concerns. “I hope Rupert and his ‘friends’ are looking forward to the many hours of depositions and testimonies,” Trump posted. That may sound like bravado, but it betrays an ulterior aim: flushing out who leaked the card and what else they may know.

    But discovery cuts both ways. Murdoch’s attorneys will be free to interrogate the origins and nature of Trump’s long, checkered relationship with Epstein — one that spanned at least 15 years. How close were they? Did Trump know about Epstein’s illegal activities? Did he ever participate, enable, or turn a blind eye? Why did their relationship allegedly sour in 2004 over a Palm Beach mansion? Was that really the end?

    Those depositions may expose far more than Trump bargained for — not just about his ties to Epstein, but about his broader conduct and associations.

    Trump has filed and settled media lawsuits before. He reportedly reached a $15 million agreement with ABC after George Stephanopoulos mistakenly said he had been “convicted of rape.” A recent $16 million CBS settlement over a 60 Minutes segment seemed more about easing Paramount’s merger path than Trump’s legal merit. But those cases were relatively tame compared to what this Journal suit could unleash.

    Murdoch’s legal team is not likely to blink. While The Wall Street Journal ran a curious follow-up story on Epstein’s “Birthday Book” that included letters from Bill Clinton and billionaire Leon Black, it offered little new insight — possibly a strategic nod or an effort to show editorial balance. But sources close to the matter insist Murdoch has no intention of settling.

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    Ghislaine Maxwell and Jeffrey Epstein with President Bill Clinton at the White House in 1993. © THE WILLIAM J. CLINTON PRESIDENTIAL LIBRARY/MEGA

    And perhaps he shouldn’t. Trump is often at his most reckless when wounded. Peggy Noonan aptly observed that “he fights even when he will hurt himself, because the fight is all.” But in this case, the fight may well invite ruin. Trump could inadvertently open the floodgates to evidence, testimony, and revelations far more damaging than a birthday card.

    He may soon learn what every good trial lawyer knows: In libel litigation, the courtroom is often the last place you want your secrets to surface.

  • German Billionaire Eyes Wall Street Journal Buyout

    German Billionaire Eyes Wall Street Journal Buyout

    In the cutthroat arena of global media mergers, few names evoke the blend of ambition and audacity quite like Mathias Döpfner, the silver-haired CEO and co-owner of Axel Springer SE. The 62-year-old German billionaire, a board member at Netflix and a self-proclaimed Elon Musk confidant, has long harbored designs on American journalism’s crown jewels. In a candid Financial Times interview this week, Döpfner openly acknowledged his interest in acquiring The Wall Street Journal from Rupert Murdoch’s News Corp empire—a tantalizing prospect that could catapult Axel Springer into the elite echelon of U.S. media powerhouses, even as he navigates a high-stakes corporate breakup and a frosty family feud at News Corp.

    Döpfner’s flirtation with the Journal comes at a pivotal juncture. He’s on the cusp of sealing a €13.5 billion ($14.2 billion) divorce from private equity giant KKR & Co., which will hand him and the widow of Axel Springer’s founder, Friede Springer, a commanding 98% stake in the company’s vaunted media portfolio. The deal, expected to finalize in early 2026, severs the classifieds arm—home to sites like StepStone and Aviv—leaving Döpfner with unencumbered control over tabloid juggernauts like Bild and Die Welt, alongside U.S. darlings Business Insider (acquired for $343 million in 2015) and Politico (snapped up for $1 billion in 2021). “This split gives us new freedom and opportunity,” Döpfner told the FT, though he candidly admitted the “higher risk” of ditching KKR’s financial ballast. To offset that, he’s slashing costs at his German titles amid a print ad slump, while doubling down on transatlantic growth.

    The Wall Street Journal, with its 3.8 million subscribers and a digital paywall that’s become a Wall Street must-read, represents the ultimate prize. Valued at $5.6 billion when Murdoch scooped it up in 2007, the paper’s worth has likely swelled to $8-10 billion today, fueled by a 15% revenue bump to $1.2 billion in fiscal 2025, per News Corp filings. For Döpfner, who unsuccessfully bid for the Financial Times a decade ago, it would crown his U.S. foray: Axel Springer’s American revenue has tripled to €800 million since the Politico buy, driven by premium subscriptions and event tie-ins like the Semafor World Economy Summit. Yet, caveats abound. Döpfner stressed the Journal “doesn’t appear to be up for sale,” pegging his odds at “close to zero.” Insiders at News Corp, however, whisper of opportunity amid the octogenarian Murdoch’s acrimonious succession battle. With eldest son Lachlan at the helm but siblings James and Elisabeth chafing at the conservative tilt, a sale could sidestep inheritance woes—especially if it nets billions to fund pet projects or buy peace.

    Financing the deal? That’s the rub. Axel Springer’s media unit was pegged at €3.5 billion in the KKR split, leaving scant dry powder for a blockbuster bid without debt or equity partners. Döpfner, ever the networker, has wooed U.S. tech titans—Musk dined at his Mar-a-Lago wedding last year—and sits on Netflix’s board, but skeptics question his firepower. “He’s a charmer with connections from Berlin to Silicon Valley, but €10 billion? That’s Musk money, not Springer scale,” quipped one media banker at a London drinks bash. Still, underestimation is folly: Döpfner’s track record includes outmaneuvering rivals for Politico during a bidding war and pivoting Bild to a profitable digital fortress despite Germany’s ad woes.

    Mounting Woes at Wood Group: CFO Exit Amid Takeover Ghosts and Cash Crunch

    As Döpfner’s empire eyes blue-sky expansion, across the Channel, Scotland’s Wood Group PLC is mired in a cautionary tale of M&A mishaps and executive missteps. The FTSE 250 engineering firm, a North Sea oil survivor turned renewables hopeful, saw its shares crater another 8% to 45p on Wednesday—valuing it at a mere £170 million—after chief financial officer Arvind Balan abruptly resigned, admitting to “misstating” his professional qualifications. The board, tipped off by an FT inquiry, accepted his immediate departure, leaving CEO Ken Gilmartin to steady a ship already listing from two botched buyouts and a grim cash outlook.

    Balan’s exit, just weeks after Wood’s bombshell November warning of up to $200 million in negative free cash flow for 2025 (flipping prior positivity), piles fresh ignominy on a company once hailed as Britain’s engineering export success. Apollo Global Management ditched a £2.2 billion ($2.9 billion) takeover in 2023 over valuation spats, followed by Dubai’s Sidara bailing on a £1.7 billion pact last year—each time sending shares into freefall. Now, with a market cap slashed 70% from 2024 highs, takeover whispers abound anew: Analysts at Peel Hunt speculate a third suitor could emerge at 150-200p a share, lured by Wood’s 40,000-strong workforce and contracts in LNG and hydrogen. “To lose one bid is misfortune; two, carelessness; three? Opportunity,” one investor quipped, channeling Oscar Wilde.

    Yet, the rot runs deeper. Wood’s pivot from fossil fuels—amid a 20% drop in oilfield services demand—has faltered, with Q3 revenue flat at $1.8 billion and debt ticking up to $1.2 billion. Balan’s fibs, reportedly inflating his CFA credentials, erode trust at a firm already under UK Listing Rules scrutiny. Investors, nursing 40% losses since Sidara’s snub, demand clarity: Will the board launch an qualifications audit? And could this nadir finally seal a deal, perhaps with a U.S. PE player eyeing Europe’s green transition?

    In broader dealmaking ripples, Howard Lutnick’s ascension to U.S. Commerce Secretary has reshuffled Cantor Fitzgerald, with sons Brandon (a DJ) and Kyle named chair and vice-chair, respectively—nepotism headlines be damned. Meanwhile, AlbaCore Capital elevated Davide Chiesa to partner, and Weil Gotshal tapped Michael Aiello for a new leadership committee ahead of Barry Wolf’s 2027 retirement.

    As media titans like Döpfner chase legacies and industrials like Wood grapple with survival, 2026 looms as a year of bold bets—and brutal reckonings—in tech-infused dealmaking.