The Associated Press
Al-Jazeera, the Pan-Arab news channel that struggled to win space on
American cable television, has acquired Current TV, boosting its reach
nearly ninefold to about 40 million homes. With a focus on U.S. news, it
plans to rebrand the left-leaning news network that co-founder Al Gore
couldn't make relevant.
The former vice president
confirmed the sale Wednesday, saying in a statement that Al-Jazeera
shares Current TV's mission "to give voice to those who are not
typically heard; to speak truth to power; to provide independent and
diverse points of view; and to tell the stories that no one else is
telling."
The acquisition lifts Al-Jazeera's reach beyond
a few large U.S. metropolitan areas including New York and Washington,
where about 4.7 million homes can now watch Al-Jazeera English.
Al-Jazeera,
owned by the government of Qatar, plans to gradually transform Current
into a new channel called Al-Jazeera America by adding five to 10 new
U.S. bureaus beyond the five it has now and hiring more journalists.
Al-Jazeera
spokesman Stan Collender said there are no rules against foreign
ownership of a cable channel - unlike the strict rules limiting foreign
ownership of free-to-air TV stations. He said the move is based on
demand, adding that 40 percent of viewing traffic on Al-Jazeera
English's website is from the U.S.
"This is a pure
business decision based on recognized demand," Collender said. "When
people watch Al-Jazeera, they tend to like it a great deal."
Al-Jazeera
has long struggled to get carriage in the U.S., and the deal suffered
an immediate casualty as Time Warner Cable Inc., the nation's
second-largest cable TV operator, announced it is dropping Current TV
due to the deal.
"Our agreement with Current has been
terminated and we will no longer be carrying the service. We are
removing the service as quickly as possible," the company said in a
statement.
Previous to Al-Jazeera's purchase, Current TV was in 60 million homes.
In
2010, the network's managing director, Tony Burman, blamed a "very
aggressive hostility" from the Bush administration for reluctance among
cable and satellite companies to show the network.
Even
so, Al-Jazeera has garnered respect for its ability to build a serious
news product in a short time. But there may be a culture clash at the
network. Dave Marash, a former "Nightline" reporter who worked for
Al-Jazeera in Washington, said he left the network in 2008 in part
because he sensed an anti-American bias there.
Current,
meanwhile, began as a groundbreaking effort to promote user-generated
content. But it has settled into a more conventional format of political
talk television with a liberal bent. Gore worked on-air as an analyst
during its recent election night coverage.
Former New
York Gov. Elliot Spitzer, former Michigan Gov. Jennifer Granholm and
Cenk Uygur are currently its lead personalities. Current signed Keith
Olbermann to be its top host in 2011 but his tenure lasted less than a
year before it ended in bad blood on both sides.
Current
has largely been outflanked by MSNBC in its effort be a liberal
alternative to the leading cable news network, Fox News Channel.
Current
hired former CNN Washington bureau chief David Bohrman in 2011 to be
its president. Bohrman has pushed the network to innovate
technologically, with an election night coverage that emphasized social
media conversation.
Current TV, founded in 2005 by former
vice president Gore and Joel Hyatt, is expected to post $114 million in
revenue in 2013, according to research firm SNL Kagan. The firm pegged
the network's cash flow at nearly $24 million a year.