News Corp.'s News Assets Could Be Turning A Corner
Alpha Gen Capital
Alpha Gen Capital
News Corp: Australian Assets Create Upside Catalyst
Alpha Gen Capital
Alpha Gen Capital
Thu, Jun. 30, 9:02 AM
Dec. 2, 2015, 9:42 PM
- While speculation about buyers for Yahoo's (NASDAQ:YHOO) core Internet business is focused on private equity, Yahoo's evolution as a media company means a number of media/telecom firms are in play for all or part of the business.
- A sale of the core business might not happen -- it's not the main purpose of Yahoo's meeting -- but on the other hand, a transaction would certainly value it at more than where it is locked up in Yahoo, which may be less than zero because of the investments in Alibaba and Yahoo Japan.
- Estimates vary widely on the Internet business' value, from just under $2B to as much as near $4B. Comcast (NASDAQ:CMCSA) could have room for that after it failed to acquire Time Warner Cable; it's been spreading out investments in a number of media and Internet companies this year, and it could lump in Yahoo's properties with its own Xfinity online video.
- Like Verizon (NYSE:VZ), another potential Yahoo Internet suitor, Comcast has also been shoring up its ad-tech bona fides with some 2015 acquisitions. Verizon could use Yahoo's data to present a better competitive face to Google and Facebook, though it would have redundancies to deal with.
- Other companies like News Corp. (NWS, NWSA) or Time Inc. (NYSE:TIME) may be more interested in some pieces of Yahoo's business rather than the whole. SunTrust analyst Robert Peck even considers AT&T (NYSE:T) and Walt Disney (NYSE:DIS) prospective buyers; Disney for tapping the data to market theme parts and movies, and AT&T trying to match up better against the Verizon/AOL combo.
- Previously: FT: P-E firms show interest in Yahoo's core business (updated) (Dec. 02 2015)
Nov. 2, 2015, 12:56 PM
- REA Group -- an Australian real estate website firm majority owned by News Corp. (NWS +0.7%, NWSA +0.4%) -- has agreed to buy out a smaller competitor, iProperty Group, for A$580M (about $414M), its parent said in an 8-K filing.
- News Corp. holds a 61.6% interest in REA Group, which may be facing a slowdown in the Australian real estate market. The move puts REA into potentially faster growing markets in Southeast Asia; iProperty holds the leading property portals in Malaysia, Hong Kong, Thailand and Indonesia.
- The deal is expected to close in Q1; "As such, it will have little impact on EPS in FY16. On a pro-forma basis the acquisition will be mildly dilutive but iProperty is expected to continue to grow strongly and in line with iProperty’s current revenue growth guidance."
Oct. 26, 2015, 4:39 PM
- The Australian pay TV unit of News Corp. (NWS -2%, NWSA -1.9%) and Telstra (OTCPK:TLSYY -1.3%) is putting A$77M into broadcaster Network Ten, as the latter announced a heavy fiscal-year loss of A$312M.
- Ten is raising that amount from existing shareholders as well by offering shares at A$0.15 each, compared to its share price of A$0.19 before a halt.
- Ultimately, Foxtel -- which was established in 1995 as a joint venture -- will achieve a 15% stake in Ten. Its original bidding partner, Discovery, dropped out of the deal.
Sep. 16, 2015, 11:13 AM
- News Corp. (NWS, NWSA) is buying Unruly Holdings, a social-video ad platform, for about $90M, along with a possible $86M in future target-based consideration.
- Unruly, founded in 2006, uses historical sharing behavior to predict the "potential for video ads to go viral across all digital touch points."
- Its three co-founders will run the operation as a separate unit reporting to UK chief Rebekah Brooks. The company employs 200 people in 15 offices.
- The deal's expected to close this month. In coming months, News Corp. business units will start offering Unruly products to ad and agency partners, meaning a bump up in premium video and mobile inventory.
Mar. 23, 2015, 9:39 AM
- After recently lowering its joint bid with Foxtel (NASDAQ:NWSA) in a months-long auction process for Australia's Ten Network, Discovery Communications (NASDAQ:DISCA) is bailing out of the proceedings.
- The two companies had already dropped a push for full control of Ten after running into pushback from Bruce Gordon, the owner of regional broadcaster Win Corp. who's already at a legally mandated limit of 14.99% ownership of Ten.
- Discovery reportedly balked at Ten's suggestion that it take only a 14.99% stake itself, rather than a controlling share.
- Foxtel now must decide whether to pursue the minority stake on its own.
- Previously: Discovery gives back some gains on Fox merger denials (Feb. 23 2015)
- Previously: Discovery/Foxtel frontrunner in bid for Ten (Nov. 23 2014)
Mar. 19, 2015, 6:40 AM
Feb. 23, 2015, 12:33 PM
- Discovery Communications (NASDAQ:DISCA) gives back much of its morning surge (shares were up 9%; now back to +5%) as the company joins FOX in denying a story (Fox says "categorically untrue") that the two companies talked merger.
- Maybe the rumor comes from a misunderstanding about a joint bid Discovery has put in with Foxtel (NASDAQ:NWSA) for Australia's Ten Network?
- Sanford's Todd Juenger says if the companies are telling the truth and they're not talking, then maybe they should be: "We believe a merger between Fox and Discovery would make strategic sense on a number of levels ... We still love the idea of Discovery as Fox’s next best alternative" to its failed tie-up with Time Warner.
Dec. 19, 2014, 4:55 PM
- News Corp. (NASDAQ:NWS) has bought BigDecisions.com, a site that "aims to help Indian consumers make smarter financial decisions through interactive, decision-making tools powered by sophisticated algorithms and data." Terms are undisclosed.
- With News Corp. stating BigDecisions.com has "helped some 40,000 users," the site appears to have a fairly small base as of now. Last month, News Corp. spent $30M to take a 25% stake in Indian real estate site PropTiger.com.
Nov. 24, 2014, 6:55 PM
- News Corp. (NASDAQ:NWS) is spending $30M to buy a 25% stake in PropTiger.com, a leading Indian real estate site.
- The investment comes on the heels of News Corp.'s $950M purchase of Realtor.com owner Move. The company also had a 61.6% stake in REA Group, which owns leading Australian real estate site realestate.com.au.
Nov. 23, 2014, 4:40 PM
- Discovery (NASDAQ:DISCA) and Foxtel (NASDAQ:NWS) are reportedly preparing to offer shareholders in Ten Network Holdings a potential interest in any turnaround in its financial performance in to an effort win the takeover auction for the troubled company.
- Time Warner (NYSE:TWX) is reportedly out of the running.
- Ten's tentative deadline for indicative offers is Dec. 2.
- Source: AFR
- Previously: Race for Ten Network Holdings to heat up this week (Nov. 10)
Nov. 14, 2014, 8:40 AM
Nov. 10, 2014, 7:54 AM
- Potential suitors for Ten Network Holdings are expected to attend presentations by management in Australia this week as the sale process speeds up.
- Time Warner (NYSE:TWX) has already thrown out a $588M offer price for Ten Network, while a joint Discovery Communications (NASDAQ:DISCA)-Foxtel (NASDAQ:NWS) bid is also anticipated.
May 2, 2014, 10:03 AM| May 2, 2014, 10:03 AM | 1 Comment
Sep. 11, 2013, 4:00 AM
- Southeastern Asset Management bought 11.9% of News Corp's (NWS, NWSA) voting rights, representing a 4.1% economic interest. Based on yesterday's closing price of $16.72, the stake is worth around $397M.
- The investment firm has the second-largest holding behind Rupert Murdoch, who owns 39% of News Corp.'s voting stock, or a 14% economic interest.
- Southeastern said it has no plans to influence News Corp. and is known for value investing. However, it's worth noting that Southeastern joined with Carl Icahn to oppose Michael Dell's buyout of Dell, and in a shareholder revolt at Chesapeake Energy. (Previous)
Sep. 4, 2013, 10:35 AM
- Newcastle Investment (NCT -2.2%) acquires Dow Jones Local Media Group from News Corp. (NWS, NWSA) for $87M.
- Local Media operates 33 local publications in 7 states. The business will now be managed by GateHouse Media (GHSE.PK), an affiliate of Fortress Investment (FIG), which is Newcastle's manager.
- Newcastle owns about 52% of GateHouse's $1.2B in debt and it and other creditors have agreed on a prepackaged Chapter 11 filing in which Newcastle expects to convert its debt holdings into equity of GateHouse.
- Presentation and conference call at 2:30 ET.