) announced the completion of the acquisition of
The Walt Disney Company
) stake in their 16 year-old Asian sports joint venture, "ESPN
STAR Sports (ESS)." However, the financial terms of the deal were
ESS was the 50/50 joint venture between Disney's ESPN and News
Corporation, providing Asian sports fans a diverse collection of
sports programs across 24 countries through 28 networks.
Earlier in June, the company announced that it will acquire
ESPN's 50% stake in ESS. ESS, with its right mix of
exclusive sporting licenses with top sporting leagues emerged as
an industry leader in the pay-TV industry.
With the acquisition, ESS is now the wholly-owned subsidiary
of News Corporation. We believe that the buyout will enhance the
company's position in sports programming, thus bringing in
incremental revenues through advertising and subscriptions.
Further, owing to a mandatory shift to a digital addressable
system in India, the move better positions both the companies to
independently manage their brands and generate positive cash
flows while significantly expanding digital
News Corporation strives to add diverse revenue streams to
hedge against economic volatility. The company is focusing on the
emerging markets to expand its media business, since these
regions have millions of viewers.
News Corporation's significant international presence has
helped it broaden its client base and product portfolio. Among
others, the company competes with
Time Warner Inc
The company recently posted first-quarter 2013 earnings of 43
cents a share beating the Zacks Consensus Estimate of 37 cents,
and rose 34% from 32 cents earned in the prior-year quarter on
the back of double-digit growth across Cable Networks.
Including one-time items, News Corporation posted quarterly
earnings of 94 cents a share, soaring from earnings of 28 cents
delivered in the year-ago quarter.
News Corporation's total revenue rose 2% year over year to
$8,136 million. However, total revenue also fell short of the
Zacks Consensus Estimate of $8,175 million
Currently, we maintain a long-term Neutral recommendation on
the stock. Moreover, News Corporation holds a Zacks #3 Rank,
which translates into a short-term Hold rating.
DISNEY WALT (DIS): Free Stock Analysis Report
NEWS CORP INC-A (NWSA): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
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