News Corp's publishing company to have $2.6 bn net cash

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.