News Corp.: A Deeply Discounted Sum-Of-Parts Play

Apr. 14, 2021 10:15 AM ETNews Corporation (NWS), NWSA7 Comments
AB Capital profile picture
AB Capital
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Summary

  • News Corp. has been on an acquisition spree of late, bringing IBD and HMH into the fold.
  • But the News Corp. "stub" remains deeply discounted relative to the market value of its REA stake and publicly traded comps for its Dow Jones business.
  • With ample catalysts on the horizon, there is value to be unlocked here, and patient investors stand to be rewarded very nicely.
News Corp Makes Unsolicited Bid For WSJ Parent Dow Jones
Photo by Michael Nagle/Getty Images News via Getty Images

News Corp. (NASDAQ:NWS) stock may have appreciated quite nicely in recent quarters, but it continues to trade at a substantial discount to its sum-of-parts. At current valuations, only ~$5bn of market cap is being attributed to News Corp's assets ex-REA. Further adjusted for the

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AB Capital profile picture
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Semi-retired investor and former buy side professional. Keeping an eye on special situations and event-driven opportunities across the equity and credit universe. All views are my own.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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