Asked if he would put his money into News Corp, he said: "Get out of that!"
Wolff, biographer of Rupert Murdoch, has not spoken to the News Corp CEO and chairman for just over a year, he said. "We're not exactly on terms," he said.
"I think my Uncle Rupert is rather off the reservation... I think he's mad as hell."
"This curious thing is that Murdoch, who has throughout my career has been the defiler of journalism and newspapers, is the last defender.
"I think he sees himself as the last guy who might save this [newspaper] business."
Murdoch has little technical savvy, he said. "Up until slightly more than a year ago, Rupert had never been on the web unaccompanied."
"When he's talking about this technological future, it's entirely based on the technological past."
Wolff's money would go on social network platforms, he said: "Google, followed by Facebook, more and more Twitter."
He was, however, cautious on the fast-expanding Demand Media:
"I don't know. One of the more interesting things that I've heard on this is that we're going to hit an SEO crisis very soon, this year. The value of an audience that is obtained through the whole process of tricking the search engines, is going to be devalued."
The Vanity Fair media columnist and Newser.com founder, praised Politico.com for taking on the Washington Post in its political coverage.
The premise, he said, was that they could take a handful of reporters from the Washington Post's 900 reporters, "and compete with them on its primary franchise, the reporting of federal government, "which they absolutely have".
"Every big city newspaper in the US is either in bankruptcy or will be in bankruptcy" in the next 12 months, he speculated. "The newspaper industry in the US is over."
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