News Corporation Board Approves Split of Company

[unhappycamper]

http://www.nytimes.com/2013/05/25/business/media/news-corporation-board-approves-split-of-company.html?ref=business

News Corporation Board Approves Split of Company
By AMY CHOZICK
Published: May 24, 2013

The board at News Corporation approved a proposed split into two companies on Friday, and authorized a $500 million stock buyback for investors in the soon-to-be-formed publishing business. It also announced appointments to the board for both of the companies.

The company is expected to complete its separation on June 28, with publishing assets like The Wall Street Journal, The New York Post and HarperCollins, and a handful of Australian pay television units, forming a company that will retain the name News Corporation.

Fox Broadcasting, Fox News, FX and the Hollywood film and television studio will form an entertainment company to be called 21st Century Fox.

Rupert Murdoch, chairman and chief executive of News Corporation, called the board’s approval of the split a “significant step in creating two independent companies with the world’s leading portfolios of publishing and media and entertainment assets.”

[dipsydoodle]

1. Rupert Murdoch plans to 'poison' News Corp takeover bids

Rupert Murdoch's News Corporation has established a so-called "poison pill" mechanism in an attempt to thwart a hostile takeover bid when it separates its entertainment and publishing businesses.

The plan, which will be in place for a year, will act as a powerful disincentive to anyone seeking to challenge Murdoch's control of the two companies, a move due to be finalised on 28 June.

The provisions will allow existing shareholders to buy stock at a 50% discount if any new investor should acquire 15% of the company.

News Corp said in a statement: "The rights agreements are intended to protect the stockholders of the company and the new News Corporation from efforts to obtain control of such companies that their respective boards of directors determine are not in the best interests of the companies and their respective stockholders."

http://www.guardian.co.uk/media/2013/may/24/news-corp-rupert-murdoch-poison-pill?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+theguardian%2Fmedia%2Frss+%28Media%29

News Corp. Will Write Down Print Division by Up to $1.4 Billion

News Corp. (NWSA), the media company controlled by billionaire Rupert Murdoch, expects to write down the value of its soon-to-be-independent publishing business by $1.2 billion to $1.4 billion this quarter.

The company concluded yesterday that “certain of its goodwill and intangible assets were potentially impaired” at the publishing unit, which includes newspapers such as the New York Post and the Wall Street Journal, according to a filing.

The writedown comes as New York-based News Corp. prepares to break off its publishing assets from its entertainment operations next month. Murdoch agreed to the split last year under pressure from shareholders, who wanted the faster-growing entertainment division to trade separately.

News Corp. also announced a new slate of board members for each company yesterday, as well as a $500 million stock repurchasing fund for the publishing business.

http://www.bloomberg.com/news/2013-05-24/news-corp-to-write-down-publishing-unit-by-up-to-1-4-billion.html

[Hugin]

3. The mythical being, "Lernaean Hydra" comes to mind.

Great...

"...the poets mention more heads than the vase-painters could paint, and for each head cut off it grew two more — and poisonous breath and blood so virulent even its tracks were deadly."

Sounds about right.

Lernaean Hydra

[dixiegrrrrl]

2. Fox News.....will form an entertainment company.

Even Murdoch admits Fox is not a news show.