Gabelli & Company
One Corporate Center July 18, 2013 Rye, NY 10580-1422 Tel (914) 921-5015 www.gabelli.com Gabelli & Company News Corp. (NWSA/NWS - $15.89/$16.02 - NASDAQ) Print For “Free” - Buy FYE: 6/30 EBITDA EV/EBITDA PMV 2015P $935 m. 3.9x $29 Dividend: None Current Return: Nil 2014P 875 4.2 27 Shares O/S: 379 mil. Cl. A non voting 2013E 855 4.2 25 200 “ “ B voting 2012A 1,124 --- --- 52-Week Range: $16.37 - $14.39 COMPANY OVERVIEW New York-based News Corp. operates in five segments: 1) News and information services – U.S., U.K. and Australian publishing businesses, including The Wall Street Journal, the Times of London and the New York Post, along with News America Marketing Corp., a leading provider of free-standing inserts (FSIs, or cents-off coupons); 2) Cable network programming – Fox Sports Australia; 3) Digital real estate services – a 62% interest in publicly traded REA Group Ltd. (Australia); 4) Book publishing – HarperCollins, one of the largest English language publishers in the world with imprints such as Avon, Harper, William Morrow and Christian publishers Zondervan and Thomas Nelson; and 5) Other – primarily the company’s nascent K-12 education business, Amplify. On June 28, 2013, “old News” Corp. (now 21st Century Fox) spun off most of its non-entertainment assets (“new News”) to holders on a one-for-four basis, i.e. investors received one share of “new” News Corp. for each four shares of “old” News. On a pro forma basis, News generated an estimated $855 million of pro forma EBITDA on roughly $9.0 billion of revenues for the year ended June 30, 2013.
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