Tuesday, July 12, 2011

News Corp boosts buyback plan to $5bn - FT.com

Keys to this article are:

  1. News has the cash both to undertake an increase in share repurchases and the BSkyB acquisition when allowed. However, the stock is not likely to increase in value during the time the government is investigating.
  2. The Murdoch family is not likely to tender and will increase their control and interest.
  3. News has net debt of four billion:
  4. BUT it is composed of $15 billion in long maturing debt and $11 billion of cash.
  5. The company also generates significant cash on an annualized basis but, with the scandal it cash generation capability becomes less predictable.

News Corp boosts buyback plan to $5bn - FT.com

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