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News Corporation Endeavors to Diversify Revenue Streams - Analyst Blog

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News CorporationNWSA is continuing with its expansion strategy by making significant investment moves. The company, which split from Twenty-First Century Fox, Inc. FOXA and offers e-books for devices sold by Amazon.com Inc. AMZN and Apple Inc. AAPL , has been diversifying its revenue streams and attempting to enhance its digital business globally.

The company's latest endeavors include the increase of its stake in APN News and Media Limited, an Australian media company, to 14.99%. APN's lucrative portfolio of radio and outdoor media assets, along with printing operations, makes it an attractive opportunity to harness.

The company also acquired VCCircle Network, a provider of digital data, business information, training and conferences network for private equity, venture capital and entrepreneurs. VCCircle Network includes VCCircle.com, Techcircle.in, VCCEdge and VCCircle Training, and is owned by Mosaic Media Ventures Pvt. Ltd. The terms of the deal were not revealed.

In Dec 2014, News Corporation acquired BigDecisions.Com, the provider of financial decision-making tools. The online platform that commenced in early 2013, caters to customers' needs in the fields of health and life insurance, retirement planning, education of children, and purchasing and renting of real estate.

Prior to this, in Nov 2014, News Corporation made a strategic move by investing in PropTiger.com, founded in 2011 in order to tap the burgeoning residential real estate market in India. The company acquired a 25% stake in Elara Technologies Pte Ltd, the parent company of this leading Indian digital real estate website, for approximately $30 million.

The Rupert Murdoch-controlled News Corporation also holds a 61.6% stake in the digital real estate services company, REA Group Limited, which operates a leading Australian residential property website. Of late, the company acquired Move Inc., which operates property listings websites in the United States, for $950 million.

News Corporation's diverse revenue streams hedge it against economic cycles. The company derives revenues from subscriptions, copy circulation, licensing and affiliate fees, direct sales, and advertising and sponsorships. The company also remains well positioned to grab the opportunities generated from technology sharing across geographies and businesses, and bundle offerings of enriched content to its consumers and advertising partners. This Zacks Rank #2 (Buy) company is also focused on pursuing integrated strategies to take advantage of the transition to digital content from print.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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