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