In June, billionaire media mogul Mr Rupert Murdoch reorganised News Corp, the company he founded, into two separate businesses.
The original firm has been renamed Twenty-First Century Fox (ASX: FOX) and houses media and entertainment assets including FOX, National Geographic, STAR and Twentieth Century Fox Film. While a new, second listed entity New News Corp (ASX: NNC) holds a mixture of news and information services including newspaper mastheads The Australian, The Sun and The Wall Street Journal, book publisher HarperCollins and a shareholding in pay-TV company Foxtel.
While there is significant debate amongst analysts and investors regarding the outlook for New Newscorp, due to the firm’s exposure to ‘old media’ assets which are potentially in structural decline, the share price performance tells a different story.
Compared with a flat return from the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO), since listing New Newscorp is up nearly 21%. Meanwhile, Twenty-First Century Fox, which investors almost universally agree houses the more appealing assets, has also outperformed the index with a return of over 9%. There early gains for New Newscorp shareholders come in stark contrast to the controversial recent listing of website owner iSelect (ASX: ISU) which is yet to trade above its IPO price.
Source: Google Finance
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