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News Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: February 3, 2011 12:22PM
News Corp. (NWS) filed Quarterly Report for the period ended 2010-12-31. News Corp Inc has a market cap of $45.96 billion; its shares were traded at around $17.51 with a P/E ratio of 17.2 and P/S ratio of 1.3. The dividend yield of News Corp Inc stocks is 0.9%.Hedge Fund Gurus that owns NWS: Jim Simons of Renaissance Technologies LLC, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns NWS: Donald Yacktman of Yacktman Asset Management Co., Mario Gabelli of GAMCO Investors, Jean-Marie Eveillard of First Eagle Investment Management, LLC.
Highlight of Business Operations:
On August 2, 2010, the Company agreed to backstop 340 million, which was subsequently increased to 400 million (approximately $525 million), of financing measures that were being initiated by Sky Deutschland. A first step of the financing was completed in the second quarter of fiscal 2011 and the Company acquired 108 million additional shares of Sky Deutschland, increasing its ownership from approximately 45% to 49.9%. The aggregate cost of the shares acquired by the Company was approximately 115 million (approximately $150 million) and the shares were newly registered shares issued pursuant to the capital increase. Proceeds from Sky Deutschlands rights offering were approximately 177 million.
In November 2010, the Company formed a joint venture with China Media Capital (CMC), a media fund in China, to explore new growth opportunities. The Company transferred the equity and related assets of its STAR China business along with the Fortune Star Chinese movie library with a combined market value of approximately $140 million and CMC paid cash of approximately $74 million to the Company. Following this transaction, CMC holds a 53% controlling stake in the joint venture and the Company holds a 47% stake.
Operating expenses decreased $25 million for the three months ended December 31, 2010 as compared to the corresponding period of fiscal 2010, primarily due to the absence of costs related to the financial indexes business, Photobucket and the Eastern European television stations all of which were disposed of in fiscal 2010, as well as the disposal of Fox Mobile which occurred in the second quarter of fiscal 2011 and favorable net foreign exchange fluctuations, partially offset by higher programming costs at the Cable Network Programming segment and higher releasing costs at the Filmed Entertainment segment. Operating expenses increased $113 million for the six months ended December 31, 2010 as compared to the corresponding period of fiscal 2010, primarily due to higher programming costs at the Cable Network Programming seg
Stocks Discussed: NWS,