News Corp (2013–present)

News Corporation (officially referred to and trading as News Corp) is an American mass media and publishing company, formed as a spin-off of the original News Corporation (as founded by Rupert Murdoch in 1980) focusing on newspapers and publishing.

It is one of two companies which succeeded the former News Corporation, alongside 21st Century Fox—which consisted of the old News Corporation's broadcasting and media properties, such as Fox Entertainment Group.[2] The spin-out was structured so that 21st Century Fox would be the legal successor and continuation of the old News Corporation, with the new News Corp being an entirely new company formed by a stock split. Following the acquisition of 21st Century Fox's motion picture, television and cable assets by the Walt Disney Company on March 20, 2019,[3] Fox Corporation, which is the News Corp's sister company and the successor of former 21st Century Fox that focused on American broadcasting, news and sports businesses, also owned and controlled by the Murdoch family.

Its notable assets include Dow Jones & Company (publisher of The Wall Street Journal), News UK (publisher of The Sun and The Times), News Corp Australia, Realtor.com as well as book publisher HarperCollins.

News Corporation
News Corp
Public
Traded as
ISINUS65249B1098
US65249B2088
IndustryPublishing
PredecessorNews Corporation (1980–2013)
Founded
FounderRupert Murdoch
Headquarters1211 Avenue of the Americas,
New York City, New York, U.S.
Area served
Worldwide
Key people
ProductsNewspapers
RevenueIncrease US$9.024 billion (2018)
Decrease US$-1.089 billion (2018)
Decrease US$-1.514 billion (2018)
Total assetsIncrease US$16.346 billion (2018)
Total equityDecrease US$9.291 billion (2018)
OwnerMurdoch family (39% voting power)
Number of employees
~28,000 (2018)
SubsidiariesList of subsidiaries
Websitenewscorp.com
Footnotes / references
[1]

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.[4][5] 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.[4][6] Robert James Thomson, editor of The Wall Street Journal, was announced as the initial chief operating officer for the company; while Murdoch would not serve as CEO, he remained chairman and a shareholder of the new News Corp.[4][7] 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.[8] 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.[8]

News Corp's board approved the split on May 24, 2013, while shareholders approved the split on June 11;[6][9][10] 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.[11][12] 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.[12] The new 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 (now consisting purely of media properties, such as Fox Entertainment Group and 20th Century Fox) was renamed 21st Century Fox.[13][14]

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.[15] GateHouse then filed for prepackaged Chapter 11 bankruptcy on September 27, 2013, to restructure its debt obligations in order to accommodate the acquisition.[16] then GateHouse emerged from bankruptcy on November 26, 2013.

On December 20, 2013, News Corp announced its acquisition of Mark Little's Storyful, a news agency specializing in verifying and distributing user-generated content relating to news events from social networking services, for $25 million, marking News Corp's first acquisition since the split. Robert Thomson stated that the service had "become the village square for valuable video, using journalistic sensibility, integrity and creativity to find, authenticate and commercialise user-generated content", and that with the purchase, News Corp would "define the opportunities that the digital landscape presents, rather than simply adapt to them".[17][18]

On May 2, 2014, News Corp acquired romance novel publisher Harlequin Enterprises from Torstar for $415 million.[19] The deal closed on August 1; it is now operated as a subsidiary of News Corp's HarperCollins.[20] 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 is owned by REA Group, a publicly traded subsidiary of News Corp Australia.[21]

News Corp also began making multiple investments in India, such as a $30 million investment in real estate site ProTiger in November 2014,[22] the December 2014 purchase of BigDecisions.com, a financial planning website,[23] and the acquisition of Indian media firm VCCircle in March 2015.[24]

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.[25] In June 2016, News Corp acquired Wireless Group (formerly UTV Media), a British radio broadcaster, for $296 million[26][27]

Assets

The company consists primarily of the former News Corp's newspaper and book publishing assets, and includes:[11][28]

See also

References

  1. ^ "News Corporation 2018 Annual Report Form (10-K)". U.S. Securities and Exchange Commission. August 15, 2018. Retrieved September 7, 2018.
  2. ^ James, Meg (June 28, 2013). "News Corp. divides into two companies; 21st Century Fox is born". Los Angeles Times. ISSN 0458-3035. Retrieved December 14, 2018.
  3. ^ Szalai, Georg; Bond, Paul (March 20, 2019). "Disney Closes $71.3 Billion Fox Deal, Creating Global Content Powerhouse". The Hollywood Reporter. Retrieved March 20, 2019.
  4. ^ a b c "News Corp confirms plan to split the media giant". BBC News. June 28, 2012. Retrieved June 28, 2012.
  5. ^ "News Corp. Will Use Fox Name as Breakup Proceeds". Bloomberg L.P. Retrieved December 3, 2012.
  6. ^ a b "News Corp. board approves company split, set for June 28". Los Angeles Times. Tribune Company. Retrieved May 25, 2013.
  7. ^ "New News is good news, says mogul". Business Day. Fairfax Media. Retrieved May 29, 2013.
  8. ^ a b Szalai, Georg (May 28, 2013). "News Corp. Unveils Post-Split Logo Based on Rupert Murdoch's Handwriting". The Hollywood Reporter. Prometheus Global Media. Retrieved May 29, 2013.
  9. ^ Wall, Matthew (June 11, 2013). "News Corp shareholders vote to split company into two". BBC News. Retrieved June 11, 2013.
  10. ^ "News Corp. plans June 11 shareholder vote on company split". Los Angeles Times. Retrieved May 14, 2013.
  11. ^ a b "New News Corp starts trading at $15 per share". The Australian. Retrieved June 19, 2013.
  12. ^ a b "'New News Corp' makes muted stock market debut". Retrieved June 19, 2013.
  13. ^ "News Corp officially splits in two". BBC News. Retrieved June 29, 2013.
  14. ^ "Rupert Murdoch splits empire but keeps faith in tomorrow's newspapers". The Guardian. June 18, 2013. Retrieved June 18, 2013.
  15. ^ "News Corp. sells 33 papers to New York investors". New York Business Journal. Retrieved September 4, 2013.
  16. ^ "GateHouse Files for Bankruptcy as Part of Fortress Plan". Bloomberg.
  17. ^ "News Corp Makes Social-Media Push". Wall Street Journal. Retrieved December 27, 2013.
  18. ^ "News Corp buys Storyful for £15m". The Guardian. Retrieved December 27, 2013.
  19. ^ "News Corp. to Buy Harlequin for $415M". ABC News. May 2, 2014. Retrieved May 2, 2014.
  20. ^ "Torstar Corporation Completes Sale of Harlequin Enterprises Limited".
  21. ^ "News Corp. to Buy Move, a Real Estate Listings Site". The New York Times. September 30, 2014. Retrieved September 30, 2014.
  22. ^ "News Corp Makes First Investment in India, Putting $30M into Real Estate Site PropTiger". TechCrunch. AOL. Retrieved July 31, 2015.
  23. ^ "News Corp Buys India-Based Financial Planning Service BigDecisions.com". TechCrunch. December 21, 2014. Retrieved December 21, 2014.
  24. ^ "News Corp acquires Indian media firm VCCircle Network". Business Standard. March 10, 2015. Retrieved March 10, 2015.
  25. ^ "News Corp sells digital education brand Amplify". Reuters. September 30, 2015.
  26. ^ "News Corp Buys Wireless Group for $296 Million". Wall Street Journal. June 25, 2016. Retrieved July 27, 2016.
  27. ^ "News Corp. Moves into Radio, Acquires U.K. Giant Wireless Group". Variety. July 1, 2016. Retrieved July 27, 2016.
  28. ^ Sweney, Mark (December 21, 2012). "News Corp's head of demerged newspaper arm may take home £2.5m". The Guardian. Retrieved December 26, 2012.

External links

1211 Avenue of the Americas

1211 Avenue of the Americas (also known as the News Corp. Building) is an International style skyscraper in Midtown Manhattan, New York City. Formerly called the Celanese Building, it was completed in 1973 as part of the Rockefeller Center extension, that started in the late 1950s with the Time-Life Building. The Celanese Corporation would later move to Dallas, Texas. Currently, 1211 is owned by an affiliate of Beacon Capital Partners, and leasing is managed by Cushman & Wakefield, Inc., of which the Rockefeller Group was once a major shareholder. The structure has a simple slab-like shape devoid of any decoration; its prosaic façade consisting of vertical alternating limestone and glass stripes. The façade stone piers are supernumerary; there are twice as many of them as structurally necessary. The glass bands are continuous and offer no indication of floor levels. These features ably create the visual lack of scale, so the tower does not look overly bulky.

News Corporation

News Corporation or News Corp may refer to:

News Corporation (1980–2013), an American multinational mass media corporation operated and owned by media mogul Rupert Murdoch

21st Century Fox (2013–2019), the legal successor to the original News Corporation

Fox Corporation (2019–present), the legal successor to 21st Century Fox

News Corp (2013–present), a new company spun off from the original News Corporation

News Corp Australia, the Australian subsidiary of News Corp

News UK, the British subsidiary of News Corp

Rupert Murdoch

Keith Rupert Murdoch, (born 11 March 1931) is an Australian-born American media mogul who founded News Corp.Murdoch's father, Sir Keith Murdoch, was a reporter and editor who became a senior executive of The Herald and Weekly Times publishing company, covering all Australian states except New South Wales. After his father's death in 1952, Murdoch declined to join his late father's registered public company and created his own private company, News Limited.

In the 1950s and 1960s, Murdoch acquired a number of newspapers in Australia and New Zealand before expanding into the United Kingdom in 1969, taking over the News of the World, followed closely by The Sun. In 1974, Murdoch moved to New York City, to expand into the U.S. market; however, he retained interests in Australia and Britain. In 1981, Murdoch bought The Times, his first British broadsheet and, in 1985, became a naturalized U.S. citizen, giving up his Australian citizenship, to satisfy the legal requirement for U.S. television network ownership.In 1986, keen to adopt newer electronic publishing technologies, Murdoch consolidated his UK printing operations in Wapping, causing bitter industrial disputes. His holding company News Corporation acquired Twentieth Century Fox (1985), HarperCollins (1989), and The Wall Street Journal (2007). Murdoch formed the British broadcaster BSkyB in 1990 and, during the 1990s, expanded into Asian networks and South American television. By 2000, Murdoch's News Corporation owned over 800 companies in more than 50 countries, with a net worth of over $5 billion.

In July 2011, Murdoch faced allegations that his companies, including the News of the World, owned by News Corporation, had been regularly hacking the phones of celebrities, royalty, and public citizens. Murdoch faced police and government investigations into bribery and corruption by the British government and FBI investigations in the U.S. On 21 July 2012, Murdoch resigned as a director of News International. On 1 July 2015, Murdoch left his post as CEO of 21st Century Fox. However, Murdoch and his family would continue to own both 21st Century Fox (until 2019) and News Corp through the Murdoch Family Trust.In July 2016, after the resignation of Roger Ailes due to accusations of sexual harassment, Murdoch was named the acting CEO of Fox News.

News Corp
Corporate directors

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