Articles for News Corp

Entertainment Stocks: Selling Dreams to the Have-Nots

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Friday, January 27th, 2012 by

The other day I had a serious discussion with some friends about the future of unskilled workers. The income inequality in our society is partly caused by skill inequality. Some skills and jobs are more scalable and therefore naturally command a salary premium. For example, an NFL player can collect a huge paycheck because even if each of the millions of TV viewers is chipping in only one penny per game, that adds up to a large sum. By contrast, even the best plumber in the world can fix only so many houses in a day. His service is not scalable, so his income is going to be limited.

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News Corp Updates: Moving Past Scandals as Fundamentals Remain Intact

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Monday, January 9th, 2012 by

In 2012, News Corp’s (NASDAQ:NWS) stock has continued a recovery that began around December 20. It appears that investors are now rewarding the company for fundamentals rather than punishing it for the phone-hacking scandal. The scandal involved the company’s U.K. newspapers engaging in phone hacking, bribery and other improper influence to publish news stories. It has significantly eroded News Corp’s market value, well outside the portion of business it prominently affected. The U.K. newspaper business constitutes just about 5% to News Corp’s stock as per our estimates. News Corp competes with other media conglomerates such as Time Warner (NYSE:TWX), Disney (NYSE:DIS) and CBS (NYSE:CBS) in TV programming, filmed entertainment and publishing businesses.

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News Corp Updates: High Profile Funds Bet on a Recovery

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Tuesday, November 22nd, 2011 by

News Corp’s (NASDAQ:NWS) stock has recovered to some extent after its phenomenal dip around July and August resulting from the hacking scandal which led to shut down of News of The World, as well as broader market fall due to economic woes in U.S. and Europe. Nevertheless based on the events from the last couple of weeks, it appears that the company is still battling with its tarnished image and stock may still remain suppressed. However, some institutional investors feel that News Corp may be a good buying opportunity now and are perhaps placing their bets on the expectation that once the hacking scandal subsides, the stock will recover. News Corp is a diversified media company that competes with other media conglomerates such as Disney (NYSE:DIS), Viacom (NYSE:VIA), Time Warner (NYSE:TWX) and CBS (NYSE:CBS).

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Telecom & Media Notes: Verizon, Sprint, Dish, Viacom, AT&T & News Corp.

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Friday, July 1st, 2011 by

Below we present a summary of key updates that might be of interest to investors interested in technology stocks. This update includes AT&T (NYSE:T), Verizon (NYSE:VZ), Sprint (NYSE:S), Dish Network (NASDAQ:DISH), Viacom (NYSE:VIA) and News Corp (NASDAQ:NWS).

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The Top 4 Sources of Value for News Corp

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Tuesday, May 24th, 2011 by

News Corp (NASDAQ:NWS) is a heavily diversified conglomerate with businesses ranging from filmed entertainment, cable networks and broadcasting to newspaper and magazine publishing. It competes with other media companies like Disney (NYSE:DIS), Viacom (NYSE:VIA), CBS (NYSE:CBS) and Time Warner (NYSE:TWX). Given the presence of several businesses under News Corp’s banner, we take a look at the company’s top 4 most valuable divisions.
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Will Netflix Enter the UK?

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Wednesday, May 4th, 2011 by

Netflix (NASDAQ:NFLX) is enjoying rapid expansion riding on the popularity of DVD-by-mail and online streaming. In March, we wrote Are Netflix’s International Ambitions Justified & Achievable? where we looked at whether market saturation was a significant risk for Netflix and if international expansion could help provide an additional source of subscriber growth. Netflix has signaled that it plans to expand abroad, and we believe that the UK could be high on the list of new markets in addition to Latin America.

We recently upgraded our price estimate to $153 as a result of continued subscriber growth momentum reported in Q1 2011; however, our estimate still stands around 30% below the market price. Netflix competes with Apple’s (NASDAQ:AAPL) iTunes and Hulu as well as video on demand (VoD) services from pay-TV providers like Comcast (NASDAQ:CMCSA), Time Warner Cable (NYSE:TWC) and others.

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Viacom Pulls Channels from iPad App Raising Stakes in the Streaming Standoff

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Thursday, April 7th, 2011 by

Viacom (NYSE:VIA) was one of the content owners that pulled its channels from Time Warner Cable’s (NYSE:TWC) iPad app recently. This combined with its changing stance regarding Hulu points to the growing friction between content owners and those companies involved in distribution through new streaming platforms like Netflix (NASDAQ:NFLX), Hulu and now tablets. As the landscape changes for delivering content, we expect to see Viacom along with competitors like News Corp (NASDAQ:NWS), Time Warner (NYSE:TWX) CBS (NYSE:CBS) and Disney (NYSE:DIS) position for a greater share of the revenues and benefit from providing content to through these new channels.

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What Harry Potter and the Deathly Hollows Part 2 Means to Time Warner

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Thursday, March 31st, 2011 by

Warner Brothers, Time Warner’s (NYSE:TWX) movie entertainment arm, is going to launch part 2 of Harry Potter and the Deathly Hollows in 3D during 2011. We take this opportunity to estimate the value of such movies from Time Warner’s perspective. Time Warner competes with Viacom (NYSE:VIA), News Corp (NASDAQ:NWS), CBS (NYSE:CBS) and Disney (NYSE:DIS) in the media and entertainment business.

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Why CBS Pulled Content from Netflix

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Tuesday, March 29th, 2011 by

CBS’ (NYSE:CBS) recent decision to pull back some of its streaming content from Netflix’s (NASDAQ:NFLX) library comes at a surprise to the rental company. Although Netflix has moved into offering its own content, CBS still competes more directly with companies like Disney (NYSE:DIS), News Corp. (NASDAQ:NWS), Time Warner (NYSE:TWX) and Viacom (NYSE:VIA). So what value does CBS see in pulling its content?

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Shift to Digital Content: A Right Move by News Corp

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Friday, March 18th, 2011 by

News Corp. (NASDAQ:NWS) competes with other media conglomerates like Disney (NYSE:DIS), CBS (NYSE:CBS), Time Warner (NYSE:TWX), Viacom (NYSE:VIA) and New York Times (NYSE:NYT) in the media and entertainment business.

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