Leo Kirch: A self-made billionaire

March 28, 2002 Posted: 6:58 AM EST

Kirch started his fortune with the rights to the Fellini film "La Strada" nearly half a century ago

FRANKFURT, Germany - The 75-year-old multi-billionaire Leo Kirch is surrounded by an aura of mystery.

The devout Roman Catholic only steps into the public eye on special occasions and has a reputation as an utterly reclusive character.

Almost blind from diabetes, Kirch has tried everything to save KirchMedia from being broken up. But he is now expected to lose control of his debt-burdened media empire in exchange for a continuing interest in the group's World Cup broadcasting rights.

A possible buyer is said to be media tycoon Robert Murdoch, who Kirch in a rare public comment described as a dangerous competitor.

"Murdoch is a shark. Sharks have sharp teeth. Anyone who can't swim with them shouldn't get in the pool with them," he recently told the German magazine Der Speiegel.

It was 46 years ago when an unknown son of a Bavarian wine trader bought the right for the Italian movie "La Strada" -- all on credit. The money, 25,000 German marks (then worth $6,000), came from his wife.

The investment proved a risk well taking; the Fellini film soon became a European bestseller, today leaving Leo Kirch the 26th richest person in Germany, according to Manager Magazin.

Now an economic downturn, combined with an unsuccessful undertaking in pay TV, has resulted in a massive debt of 6.5 billion euros which the media giant cannot repay.

One senior analyst, who wished to remain anonymous, said Kirch had overextended himself.

"Clearly having his toy broken up and fed to the sharks may be painful, but if it keeps KirchMedia alive and jobs intact it will be better in the long run," he told Reuters.

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