News Corporation ( NWSA ) recently
announced that post split, its new independent media company will
be christened 21 st Century Fox. The company is on the
verge of splitting its operations into 2 separate publicly traded
publishing and entertainment entities.
The Entertainment Company (to be named 21 st Century
Fox) will encompass cable and television assets, filmed
entertainment, and direct satellite broadcasting businesses
including Fox broadcasting, cable network, Fox News Channel, the
20th Century Fox movie studio, BSkyB, Sky Italia, Sky Deutschland,
and pay-TV operations in Europe and India.
The company is also fortifying its entertainment division by
focusing on enhancing its portfolio of regional sports channels to
solidify its Fox Sports Media Group's position in the lucrative
sports entertainment business, where it competes with Walt
Disney Company 's ( DIS ) sports coverage
Earlier, the company revealed that its new publishing company
will start operations with $2.6 billion in cash and no debt once
its planned spin-off is completed.
The Publishing Company (to be known as News Corporation) will
comprise publishing businesses, education unit and the integrated
marketing services business, with brands like The Wall Street
Journal , HarperCollins and Amplify .
News Corporation named Robert Thomson, Editor-in-Chief of Dow
Jones and managing Editor of The Wall Street Journal, as
the new CEO of its publishing company. Alongside, Michael Florin
has been appointed as the Senior Vice President and Head of
Investor Relations for the new publishing company.
We believe that the split will augur well for News Corporation,
which has been in troubled waters since the revelation of the phone
hacking scandal that eventually led to the closure of the
publication of 'The News of the World'. Moreover, the company was
held back from acquiring the remaining 61% stake in the British Sky
Further with adequate cash, the new News Corporation will be
better positioned than its peers, The New York Times
Company ( NYT ) and
Gannett Co., Inc . ( GCI ) to look for
strategic acquisitions and expand its business.
Currently, shares of News Corp retain a Zacks Rank #3
(Hold).DISNEY WALT (DIS): Free Stock Analysis ReportGANNETT INC (GCI): Free Stock Analysis ReportNEWS CORP INC-A (NWSA): Free Stock Analysis
ReportNY TIMES A (NYT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment