News Corporation (officially referred to and trading as News Corp) is an American multinational mass media company, formed as a spin-off of the former News Corporation (as founded by Rupert Murdoch in 1979) focusing on newspapers and publishing. It is one of two companies which succeeded the former News Corporation, alongside 21st Century Fox—which consists of the old News Corporation's broadcasting and media properties, such as Fox Entertainment Group. 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.
Headquarters of News Corp in Manhattan, New York
|Predecessor||News Corporation (1979–2013)|
|Founder||Rupert Murdoch and family|
|Headquarters||1211 Avenue of the Americas, New York City|
|Revenue||US$8.633 billion (2015)|
|Total assets||US$15.093 billion (2015)|
|Owner||Murdoch family (38.5%)|
|Subsidiaries||List of subsidiaries|
On June 28, 2012, Rupert Murdoch announced that News Corporation's publishing operations would be spun off to form a new, publicly traded company. 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. 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. 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.
News Corp's board approved the split on May 24, 2013, while shareholders approved the split on June 11; 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. 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. 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.
After the splitEdit
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. GateHouse then filed for prepackaged Chapter 11 bankruptcy on September 27, 2013, to restructure its debt obligations in order to accommodate the acquisition. 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."
On May 2, 2014, News Corp acquired romance novel publisher Harlequin Enterprises from Torstar for $415 million. The deal closed on August 1; it is now operated as a subsidiary of News Corp's HarperCollins. 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.
News Corp also began making multiple investments in India, such as a $30 million investment in real estate site ProTiger in November 2014, the December 2014 purchase of BigDecisions.com, a financial planning website, and the acquisition of Indian media firm VCCircle in March 2015.
In October 2015, News Corp sold its digital education brand Amplify Education to a management team supported by a group of private investors for an undisclosed sum. On June 2016, News Corp acquired UK radio station group, Wireless Group for $296 million
- Dow Jones & Company, a New York City-based financial publisher, and owners of the Wall Street Journal, MarketWatch and Barron's
- News Corp Australia, an Australian newspaper and magazine publisher, and owners of Fox Sports Australia and a stake in pay-TV provider Foxtel and classifieds company REA Group
- News UK, a British newspaper publisher
- New York Post, a daily newspaper in New York City acquired by Rupert Murdoch in 1976.
- HarperCollins, a major book trade publisher
- News America Marketing, a distributor of advertising and coupon promotions
- Wireless Group, a British radio station group
- "New Newscorp - Annual Report".
- "Rupert Murdoch Biography". Bio. Retrieved July 10, 2014.
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- "New News is good news, says mogul". Business Day. Fairfax Media. Retrieved May 29, 2013.
- 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.
- Wall, Matthew (June 11, 2013). "News Corp shareholders vote to split company into two". BBC News. Retrieved June 11, 2013.
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- "GateHouse Files for Bankruptcy as Part of Fortress Plan". Bloomberg.
- "News Corp Makes Social-Media Push". Wall Street Journal. Retrieved December 27, 2013.
- "News Corp buys Storyful for £15m". The Guardian. Retrieved December 27, 2013.
- "News Corp. to Buy Harlequin for $415M". ABC News. May 2, 2014. Retrieved May 2, 2014.
- "Torstar Corporation Completes Sale of Harlequin Enterprises Limited".
- "News Corp. to Buy Move, a Real Estate Listings Site". The New York Times. September 30, 2014. Retrieved September 30, 2014.
- "News Corp Makes First Investment in India, Putting $30M into Real Estate Site PropTiger". TechCrunch. AOL. Retrieved July 31, 2015.
- "News Corp Buys India-Based Financial Planning Service BigDecisions.com". TechCrunch. December 21, 2014. Retrieved December 21, 2014.
- "News Corp acquires Indian media firm VCCircle Network". Business Standard. March 10, 2015. Retrieved March 10, 2015.
- "News Corp sells digital education brand Amplify". Reuters. September 30, 2015.
- "News Corp Buys Wireless Group for $296 Million". Wall Street Journal. June 25, 2016. Retrieved July 27, 2016.
- "News Corp. Moves into Radio, Acquires U.K. Giant Wireless Group". Variety. July 1, 2016. Retrieved July 27, 2016.
- Sweney, Mark (December 21, 2012). "News Corp's head of demerged newspaper arm may take home £2.5m". The Guardian. Retrieved December 26, 2012.