News Corp. (NASDAQ:NWSAV) is now the 21st Century Fox
On Friday, News Corp. (NASDAQ:NWSAV) did the spin-off that many investors had been seeking, resulting in the creation of the country’s largest biggest print-media stock. The print unit will continue using the News Corp name (sans the period after the Corp) when it commences trading Monday. The New York Post, The Wall Street Journal , the Times of London as well as tabloids in Australia and the U.K. and Harper Collins, the book publisher are all part of the company’s holdings.
The new print company will have just a small segment of the market-value of what remains of the media conglomerate which will now be called 21st Century Fox. It will include Fox News, the Fox broadcast network, and the soon-to-be-launched Fox movie studio and Fox Sports 1 cable sports-channel. The company will retain the NWS ticker for shares that have enhanced voting-rights and NWSA for shares that are more commonly held. 21st Century Fox will use FOX as well as FOXA symbols.
Trading in these companies last week on a when-issued-basis suggests that the market value of the new News Corp will be around $9B and 21st Century Fox will have a market value of $67.3B.
On measures such as market value, annual revenue of around $8B and a 24,000-strong workforce News Corp will be the largest print media company in the U.S and it has the potential to expand even further. Some published reports state that Rupert Murdoch, the primary shareholder who will be serving as the chairman of both the companies, is greatly interested in buying The Los Angeles Times owned by the Tribune Co. The latter has been contemplating selling few or possibly all of its newspapers after it emerged from bankruptcy in 2012.
What is market value?
The current quoted-price of a share at which investors sell or buy common stock or even a bond at any given time is called “market price.” The market capitalization added to the market value of debt is sometimes called “total market value.” Stocks are chosen by looking at the market value of a company market and investors then decide whether the market value is adequate or whether it has been undervalued when compared to either it’s book value, net assets or on some other measure.