News Corporation: Valuation Disconnect Remains Despite Sensible And Opportunistic Dealmaking

Aug. 19, 2021 11:57 PM ETNews Corporation (NWS), NWSA10 Comments
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AB Capital
2.42K Followers

Summary

  • News Corp. announced the pending acquisition of OPIS, an end-to-end pricing and analytics provider for the energy industry.
  • I view the acquisition as a win from both valuation and strategic aspects.
  • The ex-REA stub remains undervalued by the market.

News Corp Makes Unsolicited Bid For WSJ Parent Dow Jones
Michael Nagle/Getty Images News

The News Corp. (NASDAQ:NWSA) acquisition spree continues with the pending acquisition of OPIS, which should provide subsidiary Dow Jones with another subscription-based data revenue stream. Plus, with OPIS's revenues having grown consistently through the cycles (think GFC, FY14/15 oil

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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 stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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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