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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.
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