News Corp Explained

News Corporation
Trade Name:News Corp
Type:Public
Founder:Rupert Murdoch
Area Served:Worldwide
Industry:Media
Revenue: (2024)
Operating Income: (2024)
Net Income: (2024)
Assets: (2024)
Equity: (2024)
Owner:Murdoch family (39% voting power)[1]
Subsid:List of subsidiaries
Location:1211 Avenue of the Americas
Location City:New York City
Location Country:United States
Num Employees:23,900 (2024)
Footnotes:Financials .[2]

News Corporation, stylized as News Corp,[3] is an American mass media and publishing company headquartered in Midtown Manhattan, New York City. The company was formed on June 28, 2013, following a spin-off of the media outlets of the original News Corporation as 21st Century Fox (21CF). Operating across digital real estate information, news media, book publishing, and cable television, News Corp's notable assets include Dow Jones & Company, which is the publisher of The Wall Street Journal; News UK, publisher of The Sun and The Times; News Corp Australia; and REA Group, operator of realestate.com.au, realtor.com, and book publisher HarperCollins.

News Corp and 21st Century Fox are two companies that succeeded the original News Corp., which included Fox Entertainment Group and other broadcasting and media properties.[4] The spin-out was structured so that 21CF was the legal continuation of the original News Corp., with the new News Corp being a new company formed by a stock split.

Since March 19, 2019, Fox Corporation, which holds 21st Century Fox's national broadcasting, news and sports assets (following its sale to Disney the next day), is also under the Murdoch family's control.[5] [6]

On September 21, 2023, Rupert Murdoch announced he would step down as News Corp's chairman by November.[7]

History

Formation

On June 28, 2012, Rupert Murdoch announced that News Corporation's publishing operations would be spun off to form a new, publicly traded company.[8] [9] Murdoch stated that performing this split would "unlock the true value of both companies and their distinct assets, enabling investors to benefit from the separate strategic opportunities resulting from more focused management of each division". The move also came in the wake of a series of scandals that had damaged the reputation of multiple News Corporation-owned properties.[8]

Robert Thomson, then editor of The Wall Street Journal, was announced as the initial chief operating officer for the company. While Murdoch did not serve as CEO, he remained chairman and a shareholder of the new News Corp.[8] [10] Thomson promised that the new company would "cultivate a start-up sensibility even though we already work for the world's most established and prestigious diversified media and information services company" and would emphasize building new business models around its properties and content. The logo of the new News Corporation was unveiled at an investor presentation on May 28, 2013; the handwritten logo uses script based on Murdoch's own handwriting.[11]

News Corp's board approved the split on May 24, 2013, while shareholders approved the split on June 11;[12] [13] [14]

Preliminary trading on the Australian Securities Exchange of the new News Corp's class B stock began on June 19, 2013, at around $15 per share; a value slightly lower than expected by some analysts. The shares fell in price by 3% to $14.55 per share, valuing the new company at around $7.9 billion US.[15] [16] The corporate split was finalized on June 28, 2013; during the stock splitting process, one share of the new News Corp was given to shareholders for every four shares they owned in the former News Corp.[16]

The current News Corp began trading on the Nasdaq stock exchange under the symbol "NWS" on July 1, 2013; at the same time, the former News Corporation (which encompassed purely of media properties, such as Fox Entertainment Group and 20th Century Fox) was renamed 21st Century Fox.[17] [18]

After the split

On September 4, 2013, News Corp announced that it would sell the Dow Jones Local Media Group, a group of 33 local newspapers, to Newcastle Investment Corp., an affiliate of Fortress Investment Group, for $87 million. The newspapers will be operated by GateHouse Media, a newspaper group owned by Fortress. Robert Thomson indicated that the newspapers "were not strategically consistent with the emerging portfolio" of the company.[19] GateHouse then filed for prepackaged Chapter 11 bankruptcy on September 27, 2013, to restructure its debt obligations to accommodate the acquisition.[20] Then GateHouse emerged from bankruptcy on November 26, 2013.[21]

On December 20, 2013, News Corp announced its acquisition of Dublin, Ireland-based social news agency Storyful,[22] a startup founded by journalist Mark Little. At the time, Storyful was described as "scour[ing] social-media services like Twitter and Instagram" to discover user-generated content "breaking news and viral online content" and after sourcing, to then verify, acquire, and distribute it.[22] Storyful had, for instance, reported 2013 results of 750m views of user-generated videos by its partners. The cost of the Storyful acquisition was €18 million (£15m, US$25m),[22] and marked News Corp's first acquisition since the split.[22] News Corp CEO at the time, Robert Thomson, stated that the service had "become the village square for valuable video, using journalistic sensibility, integrity and creativity", and that with the acquisition, News Corp would "define the opportunities that the digital landscape presents, rather than simply adapt to them".

On May 2, 2014, News Corp acquired romance novel publisher Harlequin Enterprises from Torstar for $415 million.[23] The deal closed on August 1; it is now operated as a subsidiary of News Corp's HarperCollins.[24]

On September 30, 2014, News Corp announced its acquisition of Move, Inc., a real estate listings company and owner of Realtor.com, a 20% stake of which was, at the time, owned by REA Group, a publicly traded subsidiary of News Corp Australia.[25]

News Corp also began making investments in India in late 2014, such as a $30 million investment in real estate site ProTiger in November,[26] the December 2014 purchase of BigDecisions.com, a financial planning website,[27] and the acquisition of Indian media firm VCCircle in March 2015.[28]

In October 2015, News Corp sold its digital education brand Amplify to a management team supported by a group of private investors for an undisclosed sum.[29] In June 2016, News Corp acquired Wireless Group (formerly UTV Media), a British radio broadcaster, for $296 million[30] [31]

In January 2020, News Corp sold Unruly, an outstream video ad marketplace, in exchange of 6.91% of Tremor Video stock.[32] On July 31, 2020, James Murdoch resigned from the News Corp board of directors, "due to disagreements over certain editorial content published by the Company's news outlets and certain other strategic decisions."[33]

On February 4, 2022, News Corp suffered a cyberattack from hackers believed to be linked to China.[34]

In February 2023, the company announced that it would be cutting 5% of its workforce across its various divisions.[35]

In September 2023, News Corp reported that Rupert Murdoch would retire from the board of News Corporation. He would also retire from the board of Fox Corporation and his son Lachlan Murdoch would replace him on both boards. The retirement would take effect in November 2023.[7] [36]

Abandoned re-merger with Fox Corporation

On October 14, 2022, it was announced that, under the instruction of Rupert Murdoch, a special committee had been established to explore a potential merger of Fox and News Corp, bringing the two companies back together since the former 21st Century Fox was spun-off from News Corp in 2013.[37] On January 24, 2023, the proposed merger was abandoned by Murdoch.[38]

Assets

See main article: List of assets owned by News Corp. The company consists of the former News Corporation's newspaper and book publishing assets, together with the digital real-estate advertising properties that are now its largest business.[15] [39]

Notes and References

  1. News: Sweeney . Mark . April 28, 2023 . 'Blood in the water': where next for the Murdoch empire, and what about the succession? . The Guardian.
  2. Web site: August 13, 2024 . News Corporation FY 2024 Annual Report Form (10-K) . August 13, 2024 . U.S. Securities and Exchange Commission.
  3. Web site: 10-K . 2020-05-04 . www.sec.gov . June 24, 2021 . https://web.archive.org/web/20210624205031/https://www.sec.gov/Archives/edgar/data/1564708/000119312519219463/d741099d10k.htm . live .
  4. News: James . Meg . June 28, 2013 . News Corp. divides into two companies; 21st Century Fox is born . Los Angeles Times . December 14, 2018 . 0458-3035 . March 10, 2018 . https://web.archive.org/web/20180310010528/http://articles.latimes.com/2013/jun/28/entertainment/la-et-ct-news-corp-21st-century-fox-20130628 . live .
  5. Web site: Szalai . Georg . Bond . Paul . March 20, 2019 . Disney Closes $71.3 Billion Fox Deal, Creating Global Content Powerhouse . March 20, 2019 . The Hollywood Reporter . March 20, 2019 . https://web.archive.org/web/20190320064742/https://www.hollywoodreporter.com/news/disney-closes-fox-deal-creating-global-content-powerhouse-1174498 . live .
  6. Web site: Viet . Dinh . November 12, 2020 . "2020 Notice of Meeting and Proxy Statement" . May 27, 2023 . Fox Corporation . December 7, 2022 . https://web.archive.org/web/20221207154936/https://investor.foxcorporation.com/static-files/0796d467-7ed6-46ea-8f52-dc3df7d69bd8#page=63 . live .
  7. Web site: Rizzo . Lillian . 2023-09-21 . Rupert Murdoch steps down as chairman of Fox and News Corp . 2023-09-21 . CNBC . en.
  8. News: June 28, 2012 . News Corp confirms plan to split the media giant . BBC News . June 28, 2012 . June 28, 2012 . https://web.archive.org/web/20120628065134/http://www.bbc.co.uk/news/business-18621949 . live .
  9. News: News Corp. Will Use Fox Name as Breakup Proceeds . Bloomberg.com . December 3, 2012 . December 3, 2012 . Bloomberg L.P. . December 5, 2012 . https://web.archive.org/web/20121205015719/http://www.bloomberg.com/news/2012-12-03/news-corp-moves-ahead-with-split-gives-names-for-new-companies.html . live .
  10. Web site: New News is good news, says mogul . May 29, 2013 . Business Day . May 29, 2013 . South Africa . June 30, 2013 . https://web.archive.org/web/20130630074305/http://www.businessday.com.au/business/new-news-is-good-news-says-mogul-20130529-2nc8u.html . live .
  11. Web site: Szalai . Georg . May 28, 2013 . News Corp. Unveils Post-Split Logo Based on Rupert Murdoch's Handwriting . May 29, 2013 . . June 7, 2013 . https://web.archive.org/web/20130607110802/http://www.hollywoodreporter.com/news/news-corp-post-split-logo-559126 . live .
  12. Web site: May 24, 2013 . News Corp. board approves company split, set for June 28 . May 25, 2013 . Los Angeles Times . May 25, 2013 . https://web.archive.org/web/20130525155053/http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-news-corp-board-approves-company-split-28-20130524,0,2598197.story . live .
  13. Web site: Wall . Matthew . June 11, 2013 . News Corp shareholders vote to split company into two . June 11, 2013 . BBC News . June 12, 2013 . https://web.archive.org/web/20130612013848/http://www.bbc.co.uk/news/business-22857106 . live .
  14. Web site: April 30, 2013 . News Corp. plans June 11 shareholder vote on company split . May 14, 2013 . Los Angeles Times . May 4, 2013 . https://web.archive.org/web/20130504085030/http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-news-corp-plans-june-11-shareholder-vote-on-company-split-20130430,0,2257797.story . live .
  15. Web site: New News Corp starts trading at $15 per share . June 19, 2013 . The Australian . June 19, 2013 . https://web.archive.org/web/20130619032312/http://www.theaustralian.com.au/media/new-news-corp-starts-trading-at-15-per-share/story-e6frg996-1226666171651 . live .
  16. News: 'New News Corp' makes muted stock market debut . Financial Times . June 19, 2013 . June 19, 2013 . August 27, 2013 . https://web.archive.org/web/20130827021717/http://www.ft.com/cms/s/0/1be6f5fe-d8bf-11e2-a6cf-00144feab7de.html . live .
  17. News: June 28, 2013 . News Corp officially splits in two . BBC News . June 29, 2013 . February 18, 2021 . https://web.archive.org/web/20210218072052/https://www.bbc.co.uk/news/business-23104822 . live .
  18. Web site: June 18, 2013 . Rupert Murdoch splits empire but keeps faith in tomorrow's newspapers . June 18, 2013 . The Guardian . October 5, 2013 . https://web.archive.org/web/20131005143529/http://www.theguardian.com/media/2013/jun/18/rupert-murdoch-split-empire-news-corp?CMP=twt_fd . live .
  19. Web site: N.Y. Bus. J. Staff . September 4, 2013 . News Corp. Sells 33 Papers to New York Investors . November 23, 2021 . New York Business Journal . October 15, 2013 . https://web.archive.org/web/20131015195654/http://www.bizjournals.com/newyork/news/2013/09/04/news-corp-sells-dow-jones-local-media.html . live .
  20. News: Pearson, Sophia . Kary, Tiffany . September 27, 2013 . GateHouse Files for Bankruptcy as Part of Fortress Plan . Bloomberg . November 23, 2021 . subscription . October 6, 2014 . https://web.archive.org/web/20141006205525/http://www.bloomberg.com/news/2013-09-27/gatehouse-files-for-bankruptcy-as-part-of-fortress-plan.html . live .
  21. Web site: GateHouse Media officially done with bankruptcy . 2023-01-23 . Democrat and Chronicle . en-US . October 4, 2022 . https://web.archive.org/web/20221004202510/https://www.democratandchronicle.com/story/money/business/2013/11/26/gatehouse-media-officially-done-with-bankruptcy/3758479/ . live .
  22. Web site: Sharma, Amol . Rubin, Ben Fox . December 20, 2013 . News Corp Makes Social-Media Push . The Wall Street Journal . November 23, 2021 . subscription . October 19, 2021 . https://web.archive.org/web/20211019111736/https://www.wsj.com/articles/SB10001424052702304866904579270043818215428 . live .
  23. News: ABC News Staff . May 2, 2014 . News Corp. to Buy Harlequin for $415M . ABCNews.go.com . . dead . August 3, 2014 . https://web.archive.org/web/20140503022156/http://abcnews.go.com/Business/wireStory/news-corp-buy-harlequin-415m-23559354 . May 3, 2014.
  24. News: DeMarchi, L. . August 1, 2014 . Torstar Corporation Completes Sale of Harlequin Enterprises Limited [Torstar press release] ]. Mediacaster Magazine . Business Information Group . dead . August 3, 2014 . https://web.archive.org/web/20140808051945/http://www.mediacastermagazine.com/press-releases/story.aspx?id=1003186087&er=NA . August 8, 2014.
  25. News: de la Merced. Michael J.. Steel. Emily . September 30, 2014 . News Corp. to Buy Move, a Real Estate Listings Site. . dead . September 30, 2014 . https://web.archive.org/web/20211028030733/https://dealbook.nytimes.com/2014/09/30/news-corporation-to-buy-move-a-real-estate-listings-site/ . October 28, 2021.
  26. Web site: Russell, Jon . November 25, 2014 . News Corp Makes First Investment in India, Putting $30M into Real Estate Site PropTiger . . November 23, 2021 . Yahoo . January 26, 2022 . https://web.archive.org/web/20220126223842/https://techcrunch.com/2014/11/25/news-corp-makes-first-investment-in-india-putting-30m-into-real-estate-site-proptiger/ . live .
  27. Web site: Russell, Jon . December 21, 2014 . News Corp Buys India-Based Financial Planning Service BigDecisions.com . . November 23, 2021 . Yahoo . October 21, 2021 . https://web.archive.org/web/20211021165831/https://techcrunch.com/2014/12/21/news-corp-makes-a-big-decision-in-india/ . live .
  28. News: Sarkar, Ranju . March 10, 2015 . News Corp acquires Indian media firm VCCircle Network . Business Standard India . November 23, 2010 . March 9, 2015 . https://web.archive.org/web/20150309224752/http://www.business-standard.com/article/companies/news-corp-acquires-vc-circle-115030900331_1.html . live .
  29. Web site: September 30, 2015 . News Corp Sells Digital Education Brand Amplify . November 23, 2021 . Reuters.com . October 15, 2021 . https://web.archive.org/web/20211015030312/https://www.reuters.com/article/us-news-corp-divestiture-amplify-idUSKCN0RU2YN20150930 . live .
  30. News: Gallivan, Rory . June 25, 2016 . News Corp Buys Wireless Group for $296 Million . . November 23, 2021 . subscription . February 8, 2021 . https://web.archive.org/web/20210208084706/https://www.wsj.com/articles/news-corp-buys-wireless-groups-talksport-for-290-million-1467290471 . live .
  31. News: Lodderhose, Diana . July 1, 2016 . News Corp. Moves into Radio, Acquires U.K. Giant Wireless Group . . November 23, 2021 . August 7, 2016 . https://web.archive.org/web/20160807094523/http://variety.com/2016/biz/news/news-corp-radio-wireless-1201807430/ . live .
  32. Web site: News Corp to sell Unruly - AdNews . 2023-01-23 . www.adnews.com.au . en . January 23, 2023 . https://web.archive.org/web/20230123145306/https://www.adnews.com.au/news/news-corp-to-sell-unruly . live .
  33. Web site: Ivanova, Irina . August 1, 2020 . James Murdoch Resigns from News Corp Board over Editorial Differences . . November 23, 2021 . December 29, 2021 . https://web.archive.org/web/20211229180606/https://www.cbsnews.com/news/james-murdoch-resigns-news-corp-board-editorial-differences/ . live .
  34. Web site: Robertson . Katie . February 4, 2022 . News Corp says journalists' emails were hacked in an attack linked to China. . . February 5, 2022 . February 5, 2022 . https://web.archive.org/web/20220205011912/https://www.nytimes.com/2022/02/04/business/media/news-corp-email-hack.html . live .
  35. Web site: Samios . Zoe . 2023-02-09 . News Corp flags job cuts as revenue, earnings decline . 2023-02-12 . The Age . en . February 12, 2023 . https://web.archive.org/web/20230212120004/https://www.theage.com.au/business/companies/news-corp-flags-job-cuts-as-revenue-earnings-decline-20230210-p5cjgi.html . live .
  36. Web site: Rupert Murdoch latest news: 92-year-old steps down as chair of News Corp and Fox . 2023-09-21 . BBC News . September 21, 2023 . en-gb.
  37. Web site: 2022-10-15 . Rupert Murdoch considering merging Fox and News Corp once again . 2022-10-17 . the Guardian . en . October 19, 2022 . https://web.archive.org/web/20221019052253/https://www.theguardian.com/media/2022/oct/14/rupert-murdoch-possible-fox-news-corp-merger . live .
  38. Web site: Fox-News Corp. Merger Dead as Rupert Murdoch Says Deal "Not Optimal" For Shareholders. The Hollywood Reporter. Weprin. Alex. January 24, 2023. January 24, 2023. January 24, 2023. https://web.archive.org/web/20230124214928/https://www.hollywoodreporter.com/business/business-news/fox-news-corp-merger-dead-rupert-murdoch-pulls-deal-1235308931/. live.
  39. News: Sweney . Mark . December 21, 2012 . News Corp's head of demerged newspaper arm may take home £2.5m . . December 26, 2012 . October 30, 2013 . https://web.archive.org/web/20131030191458/http://www.theguardian.com/media/2012/dec/21/news-corp-robert-thomson-fox . live .

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