News Corp (NASDAQ:NWSA), Storyful, Acquisition And Quest To Integrate Social Media

Posted by George Brook December 23, 2013 0 Comment 1078 views

News Corp (NASDAQ:NWSA)’s stock gained 2.25% on Friday, enough to mark fresh 52 week high of $17.97 before closing at $17.75. Since its listing in June, the stock has delivered around 12.3% returns and has traded in a disciplined range of $14.39 and $17.97.

News Corp is a New York based media and information services company that offers wide range of services, including pay-TV distribution, cable network programming, news and information, sports programming as well as book publishing and digital real estate.

The Acquisition

On Friday, December 20, 2013 News Corp (NASDAQ:NWSA) announced the acquisition of a Dublin-based social news agency startup, Storyful for approximately $25 million. Storyful would aid newsrooms source verify and distribute breaking news and viral online content. the New York Times, ABC News and Reuters are some of the leading clients of Storyful. Its services could be compared to Twitter Inc. (NYSE:TWTR)’s micro-blogging site and Facebook Inc. (NASDAQ:FB)’s Instagram.

This will mark first ever acquisition for News Corp since its part off from the Fox film and TV businesses in late June. While News Corp will help the startup company to evolve into other languages and expand overseas, for the time being it will operate as an independent unit and continue to service existing clients.

The Strategic Alignment

News Corp (NASDAQ:NWSA)’s own news organizations will also use Storyful to enhance their video offerings as well as to strengthen their news gathering operations by more deeply integrating the social media.

While Mark Little, CEO and David Clinch, Executive Editor of Storyful will continue to oversee the operations, Senior VP of Video at News Corp, Rahul Chopra will be joining Storyful management team as a company insider.

Robert Thomson, News Corp CEO said, “Storyful has become the village square for valuable video, using journalistic sensibility, integrity and creativity to find, authenticate and commercialize user-generated content.”

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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