Comments on: Another News Corp. Division Posts Impressive Results

By: Gaurav

Gaurav — Fri, 15 May 2009 04:22:00 +0000

For long-term debt, the company will be paying higher interest rates. $14bn of debt exists. Also don’t forget the TV stations in News Corp – which one can argue is going the way of newspapers. For a cheap cable network company, look at Viacom.

By: Todd Sullivan

Todd Sullivan — Thu, 14 May 2009 13:38:00 +0000

anon,

ordinarily, yes BUT in this case, the vast majority of the debt does not come due for near 2 decades so it can be heavily discounted. off the top of my head, i think only 600K comes due in 2010.

By: vlado

vlado — Thu, 14 May 2009 13:29:00 +0000

Harvard endowment just started buying as well.

"Harvard’s new purchases during the quarter include 1.47 million Class A shares of News Corp., the media company run by Rupert Murdoch"

By: Anonymous

Anonymous — Thu, 14 May 2009 13:28:00 +0000

Todd,

Thanks for the good News Corp data.

Just a slight contention with your analysis in the second to last paragraph. While News Corp has "cash" representing $2-3 a share, shouldn't you be taking the Company's "net debt" position ($3.31 a share) into consideration when comparing how much you are paying for the rest of the assets?

Joe.