Redstone and Murdoch -- The Media Negotiators

These two media powerhouses approach their business negotiations in two very different ways.

The contrasting negotiating style between Sumner Redstone (Viacom, Paramount Pictures, MTV, cable TV and CBS) and Rupert Murdoch (News Corp., MySpace.com, IGN Entertainment, 20th Century Fox, satellite TV) is remarkable.

The Los Angeles Times yesterday took a look at how these two media powerhouses are handling their negotiations in China—obviously a huge market for both of them.

Negotiating deals in China requires extensive personal dealings with government officials and the building of many business relationships. Sensitivity to cultural differences is very important, as many western business people sooner or later discover.

The Times talked with a businessman who has observed both men deal with Chinese officials. He described how Redstone, 83, and Murdoch, 75, responded to questions on sensitive issues like censorship and business dealings.

"Sumner gives an answer right away. He says either yes or no. It's almost an impulsive response. He has a strong opinion."

It's different with Murdoch. "He pauses, and his answers are long and complicated. You feel like he is saying important things, but at the end of his answer you don't have any idea about his opinion. He hedges everything. Murdoch's reserve can strike some as deviousness."

It was reported that Sumner has "a near-photographic memory. A favorite Redstone debating tactic is to recite his opponents' words back to them in perfect detail weeks or months after they were spoken."

Redstone appears to negotiate deals that are very opportunistic rather than strategic. He cuts deals because they are available to him rather than looking at how the deal may fit into an overall corporate strategy. His negotiating style – inpatient and spontaneous.

Murdoch appears to be much more of a strategic negotiator. One analyst called Murdoch "the most long-term manager I've ever seen. He thinks on a 5, 10 or 20-year horizon and has been willing to suffer enormous financial pain to get where he thinks he needs to go.

"I wonder how their Chinese negotiations will turn out?"

Knowing a little about the Chinese and how they negotiate business arrangements, my money is on Murdoch.