Middle East breeding Ruperts of tomorrow?
Here come the petrodollars. On the heels of this week’s investments in Citi (C) and Sony (SNE), Middle East entities are going to be kicking the tires on U.S. media properties, Liz Rappaport writes at TheStreet.com. She reports that real estate investment firm Blumberg Capital Partners is raising $500 million from investors in the Middle East for a fund that would target newspapers, movie studios, online media outfits, broadcast news and possibly radio businesses. The interest is fueled in part by the piles of dollars flooding places like Dubai and Abu Dhabi as oil prices near $100 a barrel. By way of comparison, David Wessel notes at The Wall Street Journal that the Abu Dhabi Investment Authority’s $7.5 billion investment in Citi amounts to the proceeds from a single week of U.S. oil imports. “Given that foreign dollar reserves eventually have to come home,” Michael Shedlock writes of the Citi deal, “this deal is just a token down payment for what’s to come.”
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