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News Corporation

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News Corporation
Company typePublic
IndustryMedia conglomerate
FoundedMarch 15, 1980; 46 years ago (1980-03-15) in Adelaide, South Australia, Australia
FounderRupert Murdoch
DefunctJune 28, 2013 (2013-06-28)
FateSplit into 21st Century Fox and News Corp (publishing and Australian broadcast operations)
Headquarters
New York City
,
United States
Area served
Worldwide
Key people
Rupert Murdoch (Founder and Chairman)
ProductsNewspapers, television, film, book publishing, satellite broadcasting, cable news channels, digital media

The original version of News Corporation (also known as News Corp. or News Corporation Limited) was a global American media conglomerate founded and overseen by media magnate Rupert Murdoch. It was initially established on March 15, 1980, as News Corp Limited in Adelaide, South Australia. Following a shareholder decision in November 2004, the company was re-registered under the Delaware General Corporation Law and headquartered at 1211 Avenue of the Americas in New York City.

On June 28, 2012, responding to shareholder concerns after its controversies and aiming to "unlock greater long-term shareholder value," Murdoch revealed plans to restructure News Corporation into two separate publicly traded entities. The division was finalized on June 28, 2013; the original News Corp. was renamed 21st Century Fox, focusing on media-related assets, while a newly formed company, News Corp, assumed control over publishing and Australian broadcast operations.

At the time of this separation, key assets included News Limited, a prominent Australian newspaper group; News International, publisher of British newspapers such as The Times and The Sun, plus the now-defunct News of the World, which was shut down following a phone hacking scandal; Dow Jones & Company, known for financial news including The Wall Street Journal; book publisher HarperCollins; and the Fox Entertainment Group, which owned entities like 20th Century Fox Film Corporation and the Fox Broadcasting Company.

Prior to its split, News Corporation held the distinction as the largest media company worldwide by total assets and ranked fourth globally in revenue, commanding significant influence across news, television, film, and print sectors.

History

Founded in 1980 by Rupert Murdoch, News Corp began as a holding company for News Limited, originally created in 1923 in Adelaide by James Edward Davidson with support from the Collins House mining interests. Control later transferred to the Herald & Weekly Times. In 1949, Keith Murdoch took charge of Adelaide’s afternoon tabloid The News, and after his death in 1952, his son Rupert inherited majority control. Today, News Limited serves as News Corporation’s Australian division, managing publications such as The Australian, headquartered in Sydney.

Expansion into the United States

The U.S. expansion of News Ltd. started in 1973 with its acquisition of the San Antonio Express and News, which consolidated into a single newspaper by 1984. The company soon introduced the supermarket tabloid National Star and purchased the New York Post in 1976 for $31 million.

In 1984, News Corp acquired the Chicago Sun-Times for $90 million alongside trade publications like Travel Weekly from Ziff Davis. The following year, it bought a 50% share in TCF Holdings—the owner of film studio 20th Century Fox—for $162 million from Marc Rich and subsequently acquired the remaining shares from Marvin Davis for $325 million.

Shortly thereafter, on May 6, 1985, News Corp announced its $3.5 billion acquisition of Metromedia’s television stations along with its syndication division from John Kluge. This transaction paved the way for establishing a fourth major commercial broadcast network in the U.S. To comply with U.S. ownership regulations, Murdoch became a naturalized American citizen on September 4, 1985.

The Metromedia purchase was finalized in 1986, culminating in the launch of the Fox Broadcasting Company (Fox) on October 9. Fox began with Joan Rivers’ The Late Show as its late-night offering and expanded into prime-time programming by April 1987.

Expansion and consolidation

Between 1986 and 1987, News Corp, through its subsidiary News International, undertook a significant reorganization of newspaper production in Britain, directly confronting the powerful printing unions. Key Australian media figures, such as John Dux from the South China Morning Post, joined Murdoch's leadership team. The relocation to Wapping in London's East End triggered intense confrontations with the National Graphical Association and Society of Graphical and Allied Trades, yet ultimately the unions conceded.

In 1987, News Corp purchased the book publisher Harper and Row for $300 million, followed by the acquisition of British publisher William Collins, Sons in 1989 for $721 million. These entities were combined that same year to establish HarperCollins.

The following year, in 1988, News Corp acquired Philadelphia-based Triangle Publications, known for titles like TV Guide, Seventeen, and the Daily Racing Form, for $3 billion. To generate funds, it sold off several trade publications to Reed International.

By 1992, mounting debt compelled News Corp to sell many U.S. magazines to K-III Communications (now Rent Group) and spin off its Australian magazine operations as Pacific Magazines. A significant portion of this debt arose from losses at the UK satellite broadcaster Sky Television, which was supported by other company assets until it merged with competitor BSB in 1990, forming BSkyB, a leading pay-TV provider in Britain.

In 1993, News Corp acquired a 63.6% share in Hong Kong’s satellite broadcaster STAR TV from Pearson for over $500 million, gaining full ownership by 1995. Murdoch emphasized satellite broadcasting's potential to circumvent state-controlled media in restrictive countries.

The Federal Communications Commission reviewed Fox network ownership in 1995 due to Murdoch’s Australian nationality but ultimately approved News Corp’s control. That year also saw News Corp collaborate with MCI Communications to create a major news website and introduce the conservative publication The Weekly Standard. Additionally, it launched the Australian pay-TV service Foxtel alongside partners Telstra and Publishing & Broadcasting Limited.

On July 17, 1996, News Corp revealed plans to acquire television producer and broadcaster New World Communications for $2.48 billion, a deal finalized in January 1997. Later that year, on October 7, Fox Entertainment Group debuted the 24-hour cable news channel Fox News Channel, entering competition with Time Warner’s CNN.

In 1999, News Corporation broadened its presence in the Australian music industry by acquiring controlling interests in Michael Gudinski’s Mushroom Records, merging it with Festival Records to form Festival Mushroom Records (FMR), overseen by Rupert Murdoch’s son James Murdoch.

Also during 1999, The Economist highlighted that despite earning £11.4 billion ($20.1 billion) over eleven years, News Corp paid very little corporate tax. Its intricate international corporate structure and strategic use of offshore tax havens enabled it to minimize tax obligations significantly.

Further expansion

Towards the end of 2003, News Corp purchased a 34% ownership interest in Hughes Electronics (currently known as DirecTV Group), the leading satellite television provider in the United States, acquiring it from General Motors for $6 billion. In 2008, DirecTV was transferred to Liberty Media in return for Liberty’s stake in News Corporation.

Following its reestablishment as a U.S. entity in January 2005, News Corporation completed the acquisition of Fox Entertainment Group, resulting in Fox's removal from the New York Stock Exchange, where it had been listed under the ticker FOX.

In 2004, Murdoch dedicated $2 billion and brought together a team of emerging executives—Ross Levinsohn, Adam Bain, Travis Katz, and Michael Kirby—to spearhead digital distribution initiatives. This group became the foundation of News Corp's digital division, Fox Interactive Media.

In July 2005, News Corporation outbid Viacom to acquire the social networking platform Myspace for $580 million, with approximately $327 million reflecting Myspace’s valuation. Within twelve months, Myspace’s worth tripled.

In February 2007, Murdoch announced plans to launch a new business-focused news channel under Fox Entertainment Group to rival CNBC, emphasizing a more "business-friendly" perspective. In July that year, News Corp agreed to purchase Dow Jones & Company, publisher of The Wall Street Journal, for $5 billion. Despite Dow Jones' existing agreement with CNBC, Fox Business Network debuted on October 15, 2007, utilizing other Dow Jones resources.

On December 16, 2008, News Corporation transitioned its U.S. share listings from the NYSE to the NASDAQ. By September 2009, it had created NewsCore, a global news wire service designed to supply content across all its media outlets.

In April 2010, News Corporation divested Bulgarian broadcaster bTV and associated assets to Central European Media Enterprises (CME) for $400 million plus a $13 million working capital adjustment. Subsequently, in September 2010, complying with Fijian regulations mandating 90% local ownership, News Corp sold a 90% share of its Fijian newspaper holdings (Fiji Times, Nai Lalakai, and Shanti Dut) to Motibhai Group.

November 2010 saw News Corp acquire education technology firm Wireless Generation for $360 million; this company was engaged in New York City’s School of One pilot initiative.

By late February 2011, amid losses exceeding $150 million and mounting competition from Facebook, News Corp sought to sell Myspace. No offers reached the $100 million minimum by May 31; eventually, Specific Media and Justin Timberlake acquired it for $35 million in June. Murdoch later described the Myspace purchase as a "huge mistake."

On July 13, 2011, during the fallout from the News of the World scandal, Rupert Murdoch withdrew News Corp's bid to acquire BSkyB, although it retained a 39.1% ownership stake.

On June 6, 2012, News Corp purchased ESPN Inc.'s share of ESPN Star Sports, thereby obtaining full control over the Asia-Pacific sports network. Later that year on November 20, it acquired a 49% interest in regional sports broadcaster YES Network, owned by the Major League Baseball franchise New York Yankees. In January 2013, News Corp secured majority ownership (54.5%) of Sky Deutschland.

On August 21, 2012, News Corporation entered into a five-year global distribution agreement with DreamWorks Animation, handling film releases through 20th Century Fox starting with The Croods (2013) through Captain Underpants: The First Epic Movie (2017), until DreamWorks was acquired by Comcast and NBCUniversal in 2016.

Finally, on February 4, 2013, News Corporation sold IGN along with related assets to publisher Ziff Davis, after plans to spin off IGN as an independent entity were abandoned.

Controversies

In July 2011, News Corp ceased publication of its UK tabloid News of the World following allegations of phone hacking, which included attempts to access voicemail and confidential information of former Prime Minister Gordon Brown. The accusations also implicated former Prime Minister Tony Blair and members of the Royal Family. Investigations revealed misuse of thousands of personal details such as names, phone numbers, and voicemail PINs, targeting individuals including families affected by 9/11, relatives of victims from the London bombings, families of British military personnel, actress Hugh Grant, among others. On July 13, 2011, under significant political pressure, News Corp withdrew its proposal to acquire the remaining 61% ownership in BSkyB.

Ethical concerns extended to News Corp’s U.S. operations, leading to demands from American legislators for governmental probes into privacy violations. Senators John Rockefeller, Robert Menendez, and Frank Lautenberg called for investigations including those by the Securities and Exchange Commission. Representative Peter King sought an FBI inquiry into News Corp’s conduct; the FBI subsequently opened an investigation into hacking incidents involving 9/11 victims. Les Hinton, then CEO of Dow Jones (a News Corp subsidiary), resigned on July 15, acknowledging wrongdoing and issuing an apology for the damage caused.

In 2012, a BBC Panorama documentary accused News Corp’s subsidiary NDS Group of employing hackers to sabotage pay TV rivals worldwide. Targets included Austar, later acquired by News Corp, and Ondigital, which eventually collapsed. NDS was originally created to protect News Corp’s pay TV interests but reportedly distributed keys to competitor set-top boxes and attempted to obtain phone records from rival companies. The Australian Federal Police collaborated with UK law enforcement agencies in investigating these hacking allegations.

Corporate Reorganization and Disney Acquisition of 21st Century Fox

On June 28, 2012, Rupert Murdoch announced a corporate split of News Corporation into two publicly traded entities aimed at "unlocking greater long-term shareholder value": one dedicated to media assets and the other concentrating on publishing. Publishing operations were separated into a new News Corporation under Robert James Thomson, editor of The Wall Street Journal. The original company retained media holdings such as Fox Entertainment Group and 20th Century Fox, was renamed 21st Century Fox, with Murdoch continuing as CEO and chairman over both firms.

The shareholder vote approving this division took place on June 11, 2013. The newly formed News Corporation began trading on the Australian Securities Exchange on June 19, with the official split completed on June 28, 2013. Shareholders received one share in the new News Corp for every four shares held previously. Both companies commenced trading on the Nasdaq stock exchange starting July 1, 2013. Early in 2014, 21st Century Fox explored a potential merger with Time Warner but abandoned negotiations by August.

In 2015, 21st Century Fox established a joint venture with the National Geographic Society to manage National Geographic’s media assets, holding a controlling stake of 73%. In 2017, Disney announced intentions to acquire 21st Century Fox. Following a competitive bidding process with Comcast, 21CF accepted Disney’s $71.3 billion offer. Simultaneously, Comcast secured control over Sky by outbidding Disney for the stake previously owned by 21CF.

To mitigate antitrust issues, on March 19, 2019, broadcasting, sports, and news divisions were separated into Fox Corporation, an independent company. Disney finalized its acquisition of the remaining media assets on March 20, 2019, rebranding these properties with "Fox" prefixes to distinguish them from Fox Corporation. After this transaction, the original News Corporation ceased operations; its former holdings are now managed by Disney, News Corp, and Fox Corp respectively. Attempts to reunify News Corp and Fox Corp emerged in 2022 but were discontinued in 2023.

Business trends

The principal financial indicators for News Corporation (fiscal years ending June 30) are as follows:

Revenue
(US$ bn) 		Net profit
(US$ m) 		Total assets
(US$ bn) 		Employees
(k)
2017 8.1 −740 14.5 26.0
2018 9.0 −1,514 16.3 28.0
2019 10.0 155 15.7 28.0
2020 9.0 −1,269 14.2 23.5
2021 9.3 330 16.7 24.0
2022 10.3 623 17.2 25.5
2023 9.8 149 16.9 25.0
2024 10.0 354 16.7 23.9

Shareholders

By June 2013, the Murdoch family controlled roughly 17% of News Corp’s equity, which translated to 39% of the voting power, thereby sustaining decisive influence despite a decrease from 29% in 2005 due to share dilution. In 2006, a restructuring deal with Liberty Media saw News Corp transfer its 38.5% ownership in DirecTV to Liberty, while reacquiring Liberty's 16.3% stake in News Corp, reinforcing Murdoch’s governance dominance. Additionally, Murdoch divested 17.5 million class A shares in December 2007.

Among other major stakeholders was Al-Waleed bin Talal of the Saudi Royal Family, who held an approximate 7% stake valued at $3 billion by 2010 and possessed a $175 million (19%) share in his Rotana Group—the largest Arab entertainment enterprise—as of 2013. Al-Waleed fully divested his interest by November 2017.

Annual conference

News Corporation organized an annual executive conference focused on media challenges intertwined with geopolitics. The event gathered top executives, senior journalists, political figures, and celebrities. Previous gatherings were hosted in locations such as Cancún, Mexico, and Hayman Island, Australia. These exclusive meetings were closed to the public and press not invited.

The 2006 session in Pebble Beach, California was chaired by Rupert Murdoch and addressed subjects ranging from European broadcasting and new media innovations to terrorism and national security policies. Keynote speakers included Murdoch himself, former California governor Arnold Schwarzenegger, ex-British Prime Minister Tony Blair, Bono, Al Gore, Senator John McCain, and former President Bill Clinton. Israel's President Shimon Peres contributed to a panel discussion titled "Islam and the West." Other distinguished participants included Newt Gingrich and actress Nicole Kidman.

Corporate governance

At the point of its division, News Corporation's Board of Directors consisted of seventeen individuals:

Political contributions

Prior to the 2010 United States midterm elections, News Corporation provided a $1 million donation to the Republican Governors Association. This action sparked criticism from Democratic figures who pointed to it as an indication of a conservative slant within its news divisions (refer to Fox News Channel controversies). The Democratic Governors Association called for increased openness in News Corporation’s journalism, with DGA leader Nathan Daschle urging Fox News chairman Roger Ailes to include a formal disclaimer on related news coverage.

At the same time, News Corporation also gave $1 million to the United States Chamber of Commerce, an organization that actively backed Republican campaigns aimed at regaining control of Congress in 2010. These financial contributions raised ethical questions among media analysts about the company's political sway as a media conglomerate.

Final assets

On June 28, 2013, News Corporation was divided into 21st Century Fox and the current iteration of News Corp. Broadcasting and media properties—excluding those held by News Limited—were transferred to Fox Corporation, which is the legal successor to both News Corporation and 21st Century Fox. The newspaper and publishing divisions, including assets under News Limited, were separated into News Corp.

Music and radio

Sports

Studios

Television

In December 2007, News Corporation reached an agreement to sell eight U.S. television stations affiliated with Fox to Oak Hill Capital Partners for roughly $1.1 billion. These stations, together with former New York Times Company stations that Oak Hill had acquired, became the foundation of Oak Hill's Local TV LLC.

Broadcast

Satellite television

  • Sky UK, holding a 39.1% stake, effectively controlling operations in the United Kingdom and Ireland; currently under Comcast ownership
  • Sky Network Television, with a 44% share in New Zealand
  • Sky Italia (fully owned), Italy’s leading pay television provider
  • Sky Deutschland (54.5% ownership), Germany’s top pay TV service
  • Tata Sky (30%), an Indian Direct-To-Home satellite TV service, partnered with Tata Group (70%)
  • Foxtel (25%), an Australian joint venture alongside Telstra (50%) and Consolidated Media Holdings (25%)
  • FOX Italy, an Italian company specializing in broadcasting and production
  • Star TV Channels, satellite TV service covering Asia with 300 million viewers across 53 countries, primarily India and China
  • Phoenix Television (17.6%), satellite broadcaster accessible in Hong Kong and select provinces of Mainland China

Cable

News Corporation’s cable portfolio includes:

Internationally, Fox International Channels operate various Fox-branded channels across more than 30 countries, featuring:

In Central and South America, Fox Latin American Channels operate in over 17 countries providing National Geographic, Universal Channel, FX, Fox Channel, Fox Sports, Speed Channel, Baby TV, Utilisima, along with advertising sales through Fox One-Stop Media. Additional stakes include:

    • LAPTV (60%), managing eight movie channels outside Brazil;
    • Telecine (12.5%), operating five movie channels within Brazil.

In Australia, holdings encompass:

    • Premier Media Group (50%), operating multiple Fox Sports channels including SPEED, FoxSportsNews, Fuel TV Australia;
    • Premium Movie Partnership (20%), a collaboration with major studios delivering movie channels.

Platform investments cover:

  • India: Hathway Cable & Datacom (22.2%), the country’s second-largest cable operator serving seven major metropolitan areas;
  • Taiwan: Total TV (20%), a pay television platform partnered with KOO's Group majority ownership.

Internet

  • News Corp. Digital Media
    • Foxsports.com – website dedicated to sports updates, scores, statistics, videos, and fantasy sports
    • Hulu (27%) – collaborative online video streaming service with NBCUniversal
    • Flektor – online tools for editing photos and videos
    • Slingshot Labs – web innovation incubator featuring projects like DailyFill
    • Strategic Data Corp – technology platform for targeted internet advertising
    • Scout.com – portal covering college sports, football recruiting, NFL news, and fantasy sports guidance
    • WhatIfSports.com – platform providing sports simulations and prediction games with fantasy elements
  • Indya.com – premier entertainment website in India
  • ROO Group Inc (5%, with potential increase to 10% contingent on results)
  • News Digital Media
    • News.com.au – Australia's leading news portal during 2013–2014
    • CarsGuide – automotive marketplace platform
    • in2mobi.com.au – mobile advertising network provider
    • TrueLocal.com.au – directory for local businesses
    • Moshtix.com.au – ticket seller specializing in live entertainment events
    • Learning Seat – provider of online compliance training solutions
    • Wego – minority ownership in travel deals website Wego.com
    • Weair – minority interest in flight booking platform weair.com
    • Netus (75%) – investment firm focusing on digital properties
  • Move (80%)
    • realtor.com – leading real estate portal in the United States
    • move.com, listhub.com, Doorsteps, Tigerlead, Moving.com, Top Producer, Reesio, Relocation.com, SeniorHousingNet.com – suite of real estate services and tools
  • REA Group (60.7%)
    • Realestate.com.au – top property website in Australia
    • Business Services s.r.l. – international real estate service provider
    • Casa.it (69.4%) – Italian property portal with Sky Italia holding 30.6%
    • atHome group – real estate websites operating across Luxembourg, France, Belgium, and Germany
      • Altowin (51%) – office management software tailored for Belgian real estate agents
    • Propertyfinders.com (50%) – UK property portal co-owned with News International holding the other half
      • Sherlock Publications – publisher of hotproperty.co.uk and related magazines
      • ukpropertyshop.co.uk – directory for UK estate agents
    • PropertyLook – property websites serving Australia and New Zealand markets
    • HomeSite.com.au – platform focused on home renovation and improvement content
    • Square Foot Limited – largest English-language property magazine and website in Hong Kong
      • Primedia – parent company of Inside DB lifestyle magazine based in Hong Kong
  • TadpoleNet Media (10%) – operator of ArmySailor.com
  • New Zealand operations:
  • Storyful – social media news intelligence service provider
  • Unruly – video advertising platform acquired for $90 million in 2015
  • The News Broadcasting Corporation
    • TNBCLive.com – major US news website as of 2017 and April 2022

Other assets

Books

  • HarperCollins – A leading publisher in the book industry.
    • HarperCollins India
  • Zondervan – Publisher specializing in Christian literature.
    • Inspirio – Producer of religious-themed gifts.

Newspapers

  • Australia, under News Limited ownership:
  • Fiji:
  • Papua New Guinea:
  • UK and Ireland newspapers published through News International subsidiaries:
  • United States newspapers and magazines:
    • New York Post
    • Dow Jones & Company:
      • Consumer Media Group:
        • Publications such as The Wall Street Journal including European & Asian editions
        • Weekly financial magazine Barron's
        • Marketwatch – Online financial news platform
        • Far Eastern Economic Review
      • Enterprise Media Group:
        • Dow Jones Newswires – Provider of global real-time news
        • Factiva – Business content and news distribution services
        • Dow Jones Indexes – Creator of stock market indexes like the Dow Jones Industrial Average
        • Dow Jones Financial Information Services – Offers databases, newsletters, and conferences targeting niche markets
        • Betten Financial News – Financial news service in Dutch
      • Local Media Group:
        • Ottaway Community Newspapers – Operates 8 daily and 15 weekly regional newspapers
      • STOXX (33%) – Joint venture with Deutsche Boerse and SWG Group managing Dow Jones STOXX indices
      • Vedomosti (33%) – Collaborative Russian financial newspaper with Financial Times and Independent Media
      • SmartMoney magazine
    • TimesLedger Newspapers based in Queens, NY:
      • Includes Bayside Times, Whitestone Times, Flushing Times, Little Neck Ledger, Jamaica Times, Astoria Times, Forest Hills Ledger
    • Courier-Life Newspapers in Brooklyn:
      • Titles such as Brooklyn Paper, Caribbean Life, Flatbush Jewish Journal

Magazines

  • United States
  • Australia
    • Alpha Magazine
    • Australian Country Style
    • Australian Golf Digest
    • Australian Good Taste
    • Big League
    • BCME
    • Delicious
    • Donna Hay
    • Fast Fours
    • GQ (Australia edition)
    • Gardening Australia
    • InsideOut (Australia)
    • Lifestyle Pools
    • Live to Ride
    • Notebook
    • Overlander 4WD
    • Modern Boating
    • Modern Fishing
    • Parents
    • Pure Health
    • Super Food Ideas
    • Truck Australia
    • Truckin' Life
    • twowheels
    • twowheels scooter
    • Vogue (Australian edition)
    • Vogue Entertaining & Travel
    • Vogue Living
  • United Kingdom
    • Inside Out magazine

Divested

Discontinued

See also

External links

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