Back to top

Analyst Blog

In a follow-up to its recent decision to split into two separate publicly traded entities, News Corporation (NWSA - Analyst Report) named Robert Thomson, Editor-in-Chief of Dow Jones and managing Editor of The Wall Street Journal, as the new CEO of its publishing company.

News Corporation hit the headlines in June, when it proclaimed its decision to split into two separate publicly traded publishing and media and entertainment entities. There has been immense pressure from shareholders to divest the publishing arm, which has been grappling with lower operating profit compared with the entertainment unit.

The Publishing Company (to be known as News Corporation) will comprise publishing businesses, education unit and the integrated marketing services business. On the other hand, Entertainment Company (to be named as Fox group) will encompass cable and television assets, filmed entertainment, and direct satellite broadcasting businesses.

The company announced Rupert Murdoch as the Chairman of the publishing entity as well as the Chairman and CEO of the entertainment company. Alongside, the company named Chase Carey as the president and COO of the new entertainment company, while James Murdoch will continue as the deputy COO.

The split is expected to augur well for News Corporation, which has been in troubled waters since the revelation of the phone hacking scandal that eventually led to the closure of the publication of ‘The News of the World’. Moreover, the company was held back from acquiring the remaining 61% stake in the British Sky Broadcasting Group.

Currently, we have a long-term ‘Neutral’ recommendation on the stock. Moreover, News Corporation, which competes with Time Warner Inc. (TWX - Analyst Report), holds a Zacks #3 Rank that translates into a short-term ‘Hold’ rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%