) recently announced that its subsidiary, News Limited, will sell
its 44% stake in the New Zealand's largest subscription based
broadcasting company, SKY Network Television Limited.
Though the financial terms of the deal were not disclosed, the
company stated that it will sell its holdings to several
institutional and retail investors. Post sales, the company will
not have any stake in the SKY Network Television Limited.
News Corporation is focused on managing its global brands
independently to generate positive cash flows while significantly
expanding digital opportunities. In a similar move, the company
ended its 16 year-old Asian sports joint venture with
The Walt Disney Company
The move comes at a time when News Corporation is on the verge
of splitting its operations into 2 separate publicly traded
publishing and entertainment entities.
This Zacks Rank #3 (Hold) stock is focused on creating a much
more profitable entity 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
The split is expected to 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 Broadcasting Group.
Moreover, in the past, there have been instances when
Time Warner Cable Inc.
) split into two separate entities in order to capitalize on
CBS CORP (CBS): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
NEWS CORP INC-A (NWSA): Free Stock Analysis
TIME WARNER CAB (TWC): Free Stock Analysis
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