News Corp Begins Publishing Spin-Off Process With SEC Filing

There are some interesting nuggets for investors in what’s mostly a technical document that kicks off the process that will lead to the spinoff of News Corp‘s publishing assets into a new, publicly traded company. It’s “another important step forward in the evolution of our company and in the establishment of two independent global leaders in Fox Group and the new News Corporation,” CEO Rupert Murdoch says. The filing notes that the assets going into the new company generated a net loss of $92M in the three months ending September 30, down from a $38M profit in the period last year, on revenues of $2.13B, -1.5%. That includes a $115M impairment charge, with $112M for newspapers following a restructuring and layoffs in the UK and Australia. The publishing company assets also lost $2.08B in the fiscal year that ended in June, down from a $678M profit, on $8.65B in revenues, -4.8%. Much of the decline is due to the closing of the scandal-ridden News Of The Worldtabloid. The spinoff will include Fox Sports Australia which, for some strange reason, News Corp says “favorably complements our publishing and education portfolio.” The document notes that UK and U.S. officials are still investigating the hacking and bribery scandals (referred to here as “U.K. Newspaper Matters”). The proceedings “could damage our reputation and might impair our ability to conduct our business.” Although the company has resolved many cases, “management believes that it is probable that additional claims will be filed.” (more…)

This article was printed from https://deadline.com/2012/12/news-corp-publishing-spinoff-sec-filing-393166/