MUMBAI: News Corp?s new publishing entity that will be formed after proposed separation from the high -growth media & entertainment business will have net cash of $2.6 billion and no debt, reflecting head honcho Rupert Murdoch?s continued love for the print business that has been rapidly declining in developing markets.

As per the company?s filing with the U.S. Securities and Exchange Commission (SEC), out of $2.6 billion net cash about $1.82 billion will come from the parent company.

The new News Corporation, as the publishing company would be known as, will have $18.6 billion in total assets. The media & entertainment group would be known as Fox Group.

The new News Corporation will comprise a range of market-leading brands in news and information services, integrated marketing services, digital real estate services, book publishing, and digital education, as well as sports programming and pay-TV distribution in Australia.

Media reports in US say that Murdoch would utilise the cash pile in acquiring newspapers with Tribune Co?s newspaper assets also on his radar. The unit, which will become a separate publicly held business in June, will also have access to a revolving credit line.

?The new News Corporation?s strong balance sheet will provide the Company with full financial flexibility to pursue its strategic agenda, which is to further develop and expand the power of its market-leading brands over a myriad of platforms,? News Corporation Chairman and CEO Rupert Murdoch.

?We believe the new News Corporation?s strong balance sheet, along with its diversified revenue base, will be key competitive assets that will allow the company to lead in innovation and the creation of long term shareholder value.?

Meanwhile, News Corp has appointed Michael Florin as Senior Vice President and Head of Investor Relations for the new News Corporation, the proposed global publishing entity. In his new role, effective 1 April, he will report to Chief Financial Officer of the new News Corporation, Bedi Ajay Singh.

MUMBAI: Rupert Murdoch-promoted News Corp has decided to exit Sky Network Television, New Zealand?s pre-eminent pay television broadcasting service, by divesting its 44 per cent stake in the company.

The global media conglomerate is the largest shareholder in Sky New Zealand through its subsidiary News Limited.

The company has appointed Deutsche Bank to underwrite and, together with Craigs Investment Partners, to manage the sales of its Sky shares. The shares are expected to be sold to a broad range of institutional and retail investors.

Following the sales, News Limited will no longer have any holding in Sky Network Television. As a result of the sale, Michael Miller, Regional Director of News Limited, will resign from the board of Sky.

News Corp President and COO Chase Carey said, "Sky is a world class subscription television business and has been an outstanding investment for News Corporation. We and Sky have always enjoyed an excellent, arms-length working relationship and we expect this to continue unaffected by the sale. In particular, we do not anticipate any change to current arrangements regarding access to content and collaboration on technology."

According to The Australian newspaper, News Limited shares were being offered at NZ$ 4.80 each, giving the stake a value of NZ$ 815 million ($671 million).

MUMBAI: UK pay TV service provider BSkyB and News Corp are said to be looking at being involved in a new cycling series.

Teams that take part in the Tour de France would be involved in this new series.

BSkyB finances the cycling team, Team Sky. Media reports have speculated that BSkyB and News Corp might take a stake in the series.

The ?breakaway? series was first proposed over a year ago. UCI was firmly opposed to it as it feared that the appeal of some of the existing races would be affected. However subsequently Lance Armstrong admitted to doping which tarnished the image of the Tour de France and weakened UCI which has come under some fire.

Races will be held globally if the series takes flight. The aim would be to broaden the reach and appeal of the sport which is trying to recover from the Armstrong debacle.

MUMBAI: James Murdoch has reiterated the importance of India as a market for News Corp.

Murdoch believes pay TV operators in the country will consolidate over time due to regulatory changes.

?India is a very important market for us, it?s one of our largest international markets," Murdoch, the Deputy COO of News Corp said at an investment conference in San Francisco.

He is also satisfied with the progress being made in South America. "We?ve also made great strides in South America over the last few years, particularly the launch of our sports business there," he added.

Murdoch also stated that the investment in UK pay TV service provider BSkyB, which News Corp un-successfully tried to buy out, is an unfinished business.

News Corp in the recent years has been trying to streamline its overseas businesses that aren?t consolidated.

Last month, the company increased its stake in German pay-TV company Sky Deutschland (SKYD), giving it majority control and putting it a step closer to creating a pan-European broadcaster.

MUMBAI: Rupert Murdoch-controlled News Corp?s payout to ESPN for the 50 per cent stake buy in ESPN Star Sports (ESS) is $220 million, net of cash.

In November 2012, News Corp said it acquired the stake of ESPN in ESS for approximately $335 million. So this implies that ESS had a cash balance of $115 million at the time of buying out ESPN?s stake in the company.

ESPN, the American sports television network, said Wednesday in its first quarter financial results that it has gained $219 million from the sale of its 50 per cent interest in ESS, its Asian sports joint venture with rival News Corp.

ESPN last year sold its stake in the JV for $335 million thereby valuing ESS at $770 million. ESS, which is now a wholly-owned subsidiary of News Corp, has been renamed as Fox Star Sports Asia.

Except in India, the ESPN brand name has also been dropped across Asia and all the channels have been renamed Fox Sports in markets where it had a presence.

"EPS for the current quarter includes a gain on the sale of our 50 per cent interest in ESPN STAR Sports of $219 million," The Walt Disney Company said in its October-December first quarter results.

The gain from sale of equity interest in ESS helped ESPN to partially offset lower operating results during the quarter.

MUMBAI: American media conglomerate News Corporation?s second quarter net profit rose 42 per cent to $2.38 billion from $1.06 billion a year earlier, driven by double-digit growth at regional sports networks, Fox News, FX network and National Geographic Channels.

News Corporation reported $9.43 billion of total revenue for second quarter ended 31 December, a 5 per cent increase over $8.98 billion a year earlier. The revenue increase was led by $398 million or 18 per cent growth at the company?s Cable Network Programming segment.

This quarter?s pre-tax results included $1.40 billion of net other income, principally related to gains on the acquisitions of additional ownership stakes in Fox Sports Australia and Fox Star Sports Asia (formerly ESPN Star Sports), as well as a $131 million gain from the company?s participation in British Sky Broadcasting?s (BSkyB) share repurchase program, which is reflected in equity earnings of affiliates.

These gains were partially offset by $65 million of restructuring and impairment charges, primarily related to the company?s international newspaper businesses.

Commenting on the results, News Corp Chairman and CEO Rupert Murdoch said, "News Corporation?s fiscal second quarter performance reflects our strong momentum. Double-digit gains in our cable and television businesses, along with improvements in our publishing segment, drove revenue and earnings growth even as we seized opportunities to invest in our core businesses for long-term and sustainable growth.?

Cable Network Programming reported quarterly segment operating income of $945 million, a 7 per cent increase over the prior year quarter, driven by an 18 per cent increase in revenue. Operating income contributions from the domestic channels increased 9 per cent.

Double-digit revenue growth at the Regional Sports Networks (RSNs), Fox News Channel, FX Network and National Geographic Channels was partially offset by increased programming costs, including expanded college football and Ultimate Fighting Championship (UFC) coverage, as well as higher costs at the RSNs related to the benefit recognised in the prior year as a result of the National Basketball Association (NBA) lockout.

The company?s international cable channels? quarterly earnings contributions increased 3 per cent from a year ago, reflecting strong operating profit growth at the non-sports channels at Fox International Channels (FIC) and Star, partially offset by the costs associated with the inaugural broadcasts of BCCI cricket and the adverse impact of the strengthened US dollar.

Affiliate revenue grew 13 per cent and 42 per cent at the domestic and international cable channels, respectively. Domestic network growth reflects higher rates across all networks, led by growth at the Fox News Channel and RSNs. Approximately 40 per cent of the international affiliate revenue increase reflects strong local currency growth at the non-sports channels at FIC and Star. The balance of the growth was principally from the inclusion of Fox Pan American Sports (FPAS) and Fox Star Sports Asia, partially offset by the impact of the strengthened US dollar.

Advertising revenue at the domestic cable channels grew 8 per cent in the quarter over the prior year period driven by growth across most networks. The international cable channels? advertising revenue improved 29 per cent from the prior year quarter. Nearly two-thirds of the international cable revenue increase reflects strong local currency growth at the non-sports channels at FIC and Star. The balance of the growth was from the inclusion of FPAS and Fox Star Sports Asia, partially offset by the impact of the strengthened US dollar.

Expenses at Cable Network Programming grew 26 per cent in the quarter over the corresponding period in the prior year due to increased sports programming costs, including increased rights costs at the RSNs related to the timing benefit in the prior year resulting from the NBA lockout, rights fees for BCCI cricket in India, expanded college football coverage, UFC rights fees, as well as expenses associated with the consolidation of the FPAS and Fox Star Sports Asia networks. These increases were partially offset by reduced National Hockey League rights costs at the RSNs resulting from this season?s lockout.