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.

MUMBAI: News Corporation has made two senior management appointments for the new News Corporation, the proposed global publishing entity to be formed as part of the company?s intended separation into two independent, publicly traded companies.

Anoushka Healy, currently Group Managing Editor of The Times and Sunday Times in London, has been named Chief Strategy Officer and will help shape the new News Corporation and fashion its strategic direction. She will also be responsible for sharing best practices across the organization, implementing new projects and supporting talent around the company?s businesses.

William Lewis has been appointed Chief Creative Officer. He will be responsible for the new company?s creative strategy and will have a central role in developing new commercial opportunities, including product launches, digital initiatives and acquisitions.

Lewis joined News Corporation as Group General Manager of News International in London in September 2010 and became an executive member of News Corporation?s Management and Standards Committee in July 2011.

"Both Healy and Lewis will be based in New York and report to Robert Thomson, Chief Executive Officer of New News Corporation.

"Will and Anoushka will be at the very heart of the new company, expanding our digital and global reach and building new businesses. Anoushka is a fully certified organizational genius and master of motivation. Will has an innate understanding of audiences and how their needs are changing. He is as diligent as he is digital," said Thomson.

MUMBAI: Rupert Murdoch?s News Corporation will become the majority shareholder in Sky Deutschland with a 54.5 per cent stake in the loss making German media company.

News Corporation, which holds 49.9 per cent stake in Sky Deutschland, has reached an agreement with the company and its new bank syndicate to support both a new financing structure and the issuance of ?438 million of new equity.

The new bank financing, which will be guaranteed by News Corporation, will replace Sky Deutschland?s current bank debt facilities.

As a result of this transaction Sky Deutschland will become a consolidated entity of News Corporation, the company said in a statement.

Under the new financing structure, News Corporation has committed to provide a guarantee to Sky Deutschland?s lending banks and to act as guarantor to the German Football League (DFL) for Sky Deutschland?s new Bundesliga broadcasting license for the 2013-17 seasons in an amount of up to 50 percent of the license fee per season.

"We have always believed in Sky Deutschland?s ability to transform the pay TV experience in Germany and Austria and this new financing structure further validates that longstanding commitment," said News Corporation President and COO Chase Carey.

"News Corporation?s continued investment underscores the value we see in Sky Deutschland and the significant market opportunities it faces, and reflects our confidence in its management team and their strategies for growth."

The move comes as the company is in the process of splitting its profitable media and entertainment business from the loss making publishing business. The M&E entertainment company will be known as Fox Group while the publishing entity will retain the name News Corporation.

Earlier, Rupert Murdoch?s News Corp, which owns 39.1 per cent in BSkyB, had made a failed attempt to taking full control of the UK pay-TV operator due to the phone hacking scandal.

MUMBAI: Rupert Murdoch-promoted News Corporation has said in its regulatory filing that its publishing arm on a standalone basis would have lost $2.08 billion in the last fiscal year compared to $678 million a year earlier.

The loss includes an impairment charge of around $2.6 billion due to closure of the News of the World and lower revenues at its Australian papers.

The company?s revenue from publishing business fell to $8.65 billion in fiscal year 2012, from $9.1 billion a year earlier.

News Corp has initiated the process of splitting the company into two independent, publicly-traded companies by filing an initial Form 10 Registration Statement with the US Securities and Exchange Commission (SEC).

Earlier, this month News Corp had decided to name its media and entertainment company as Fox Group with the publishing entity retaining the name News Corporation.

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

Fox Group, the film and television businesses, will comprise Fox Broadcasting, Twentieth Century Fox Film, Twentieth
Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star Network, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland.

"The filing of the Form 10 is 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," said Rupert Murdoch, Chairman and CEO of News Corporation.

"Today we are pleased to provide further details on the new News Corporation - a global diversified media and information services company uniquely positioned to take advantage of exciting growth opportunities and new business models."

MUMBAI: $335 million. That?s the price Rupert Murdoch-controlled News Corp has to fork out to buy The Walt Disney Company-owned ESPN?s 50 per cent stake in their Asian joint-venture ESPN Star Sports (ESS).

Murdoch, keen to take full control of the sports broadcasting empire in Asia, will not have ESPN as the guarantor for $800 million of payment obligations of ESS towards rights acquired for sports events. News Corp will, thus, be the sole guarantor for the rights payment obligations now.These include payments that are to be made for the remaining tenure of the cricket properties like ICC (including World Cup) and Champions League.

"The value News Corp is paying is for gaining market strength in countries like India. The profit of the JV comes from the rest of Asia business. But India is a bigger bet for Murdoch," says a media analyst.

Walt Disney will recognise a gain of approximately $220 million ($165 million after tax) in the first quarter of 2013.

On 7 November, the company sold its 50 per cent equity interest in ESS, which operates 25 television networks and three broadband networks covering 24 markets in Asia.

News Corp had in June announced that it will take full control of ESS following ESPN?s decision to sell its 50 per cent stake in the JV which was formed 17 years back.

Before the JV was formed, ESPN competed with News Corps? Star Sports in India and Asia which saw the bids for sports rights spiral out of control. Hence the decision to come together and exploit the opportunities together in the nascent Asian market.

The stake sale marks the exit of ESPN from the Asian market due to a two-year non-compete clause. However, the company continues to be invested in Asia through its digital business which includes ESPNCricinfo, ESPNFC and ESPN Mobile.

Murdoch has expressed sudden aggression in the sports broadcasting business in the US as well. Gearing up to give ESPN a fight in the US, News Corp acquired in November 49 per cent stake in Yankees Entertainment and Sports Network (Yes), the cable network channel owned by baseball team New York Yankees and its partners.