In a recent filing,
) revealed that its new publishing company will start operations
with $2.6 billion in cash and no debt once its planned spin-off
News Corporation is on the verge of splitting its operations
into 2 separate publicly traded publishing and entertainment
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
On the other hand, the Entertainment Company (to be named as
Fox group) 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.
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 appointment 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 Broadcasting Group.
Further with adequate cash, the new News Corp. will be well
positioned than its peers,
The New York Times Company
Gannett Co., Inc
The McClatchy Company
) to look for strategic acquisitions and expand its business.
Currently, shares of News Corp retain a Zacks Rank #3
GANNETT INC (GCI): Free Stock Analysis Report
MCCLATCHY CO-A (MNI): Free Stock Analysis
NEWS CORP INC-A (NWSA): Free Stock Analysis
NY TIMES A (NYT): Free Stock Analysis Report
To read this article on Zacks.com click here.