Aussie gaming and media tycoon dies

28.12.2005

Associated Press reported the sad news this week that the legendary Australian business tycoon, cricket fan and gambling whale Kerry Packer (68) died over the holiday week at his Sydney home.

Packer was Australia's wealthiest man, with a $5 billion dollar fortune made as he built up a media empire from the small company his father started after using a gambling win to transport the family from Tasmania to Australia.

"Mrs. Kerry Packer and her children, James and Gretel, sadly report the passing last evening of her husband and their father Kerry," according to a statement from Tony Ritchie, a Nine Network executive. "He died peacefully at home with his family at his bedside."

Packer had long been plagued by ill health, battling cancer and receiving a kidney transplant.

His media and gambling empire was centered on Publishing & Broadcasting Ltd., which owns Nine as well as Melbourne's Crown Casino. PBL's gaming earnings have climbed 43 percent over the last five years and now account for 40 per cent of PBL's underlying profits. TV earnings have stagnated over the same period. The company is developing casinos in Macau with Asian businessman Stanley Ho, and has been a highly supportive partner in Betfair's attempts to acquire entre to the Australian market through a Tasmanian license for its operations.

Outside of his business and generous charity interests, Kerry Packer was one of the world's premier casino "whales" - high-end gamblers numbering only 150 who could get instant land casino credit of more than $1million. He was also keenly interested in sports and had a major impact on global cricket through his colourful 1 day series concept.

The mogul's 38 year old son James is his likely successor and has been in the business, mainly on the new media and gaming side for some time, leading anaylysts to suggest that he may place more emphasis on this growing aspect of the group's business over its more traditional media interests.

"James's focus is not on media, so you wonder whether they will split PBL into two companies," Shaw Stockbroking head of research Brent Mitchell said. "There aren't really too many synergies between gaming and media."

Market commentator Marcus Padley said James Packer had to "step up to the plate" and assert leadership after the trauma of two weeks of court examination over One.Tel's failure. James Packer and fellow media scion Lachlan Murdoch lost their companies $1 billion in the 2001 collapse of this deal.

Despite lingering doubts from some quarters due to James's role in the One.Tel debacle, former PBL chief Peter Yates and long-time Packer executive Ian Johnson said the company would continue strongly under the 38-year-old's leadership. Advertising guru Harold Mitchell said James was tough, clever, strong and financially literate enough to be a success.

PBL last month beefed up its management, appointing Pat O'Sullivan, the former chief financial officer at its multimedia partner Optus, as PBL's first ever chief operating officer, reporting to chief executive John Alexander.