The Kirch Group, the big German media company, teetered on the edge of bankruptcy today after rescue talks with bankers and investors, including Rupert Murdoch, broke down Tuesday night.

... the company might be forced to file for bankruptcy protection this week.

At stake is KirchMedia, a Kirch unit in television broadcasting. If KirchMedia collapses, the rest of the empire will follow in short order.

A bankruptcy filing would shake up Germany's media industry and would have important political implications.

Kirch would be the third major German bankruptcy in less than a month ... Banks are under pressure ... reluctant to [offer a bailout] ...

... Many politicians on the German left consider Mr. Murdoch an anathema. ... Without a deal, KirchMedia will be required by law to declare insolvency ...

... KirchMedia already technically insolvent ... Kirch's banks would have to write off all or most of their loans. ...

Kirch's aging founder ... will give up control ... but has insisted on retaining control over rights to the 2002 and 2006 World Cup games ...