×

News Corp. Split Means Big Test for Stocks

New companies will begin normal trading on Monday

News Corp. completed the spinoff of its publishing assets Friday, setting the stage for both companies to prove themselves on the open market.

Shares for both companies began early trading on June 19, but normal trading will begin next week.

“The big event is really Monday,” said RBC Capital Markets analyst David Bank. “They’re two very different companies with two potentially very, very different investor bases.”

Early buyers will begin receiving their shares next week. Existing shareholders will get one share of the new publishing entity for every four shares of the new media company they own.

The preliminary market gave theoretical values for both new entities that will be tested next week when normal trading begins.

Early trading pegged the publishing division’s value at about $8.8 billion, according to published reports. Preliminary shares of the publishing company, which will keep the News Corp. name, closed Friday at $15.25.

Early trading for the media and entertainment company, 21st Century Fox, closed at $28.99. Analysts have pegged the company’s value around $67 billion based on preliminary trading.

Trading for both companies has already begun on the Australian stock exchange and has outperformed many analysts’ expectations.

21st Century Fox holds the company’s film and television studios. Its core cable channel business, which includes Fox, FX, Fox News Channel, Fox Sports Network, National Geographic Channels, STAR, Fox Pan American Sports, is a key driver of the new company’s value. Company also includes the Shine Group and pay television assets Sky Deutschland, Sky Italia and equity interests in BSkyB and Tata Sky.

The new News Corp. will now contain the companies publishing assets, including the Wall Street Journal and the New York Post.

21st Century Fox launches as a unique force bringing news and entertainment to more than a billion customers every day in over 100 languages,” said  News Corp. and 21st Century Fox chairman and CEO Rupert Murdoch in a statement announcing the completion of the split. “Our success will continue to be rooted in a deep belief in originality and a commitment to empowering creative minds and entrepreneurs around the world.”

Split, which completed at 1:30 pm ET, finishes a process the company announced last June.

Popular on Variety

More Biz

  • Beverly Hills Realtor Accused of Stealing

    Beverly Hills Realtor Accused of Stealing From Usher, Adam Lambert

    A Beverly Hills real estate agent has been arrested on charges of stealing from the homes of celebrities, including Usher, Adam Lambert and “Real Housewives” star Dorit Kemsley. Jason Emil Yaselli, 32, is accused of encouraging an accomplice, Benjamin Ackerman, to enter homes during open houses in order to steal from them. Ackerman allegedly sold [...]

  • Pod Save America Hosts on Trump

    'Pod Save America' Hosts on Trump, the Democratic Primary and What's Wrong With Cable News

    Like many Democrats, Tanya Somanader was blindsided by the 2016 presidential election. A veteran of the Obama White House and a former speechwriter and digital specialist for House Speaker Nancy Pelosi, Somanader was gearing up for a Hillary Clinton administration. Instead, she had to grapple with the reality of a Donald Trump presidency. “A lot [...]

  • Ann Sarnoff Warner Bros

    Ann Sarnoff Formally Takes Reins of Warner Bros. as CEO

    The Ann Sarnoff era at Warner Bros. has begun. Sarnoff formally took the reins as Warner Bros. chair-CEO on Thursday, two months after she was appointed to the post. Sarnoff told employees in a memo that she has been impressed by the company’s track record during the past year amid a period of upheaval for [...]

  • Former movie producer Harvey Weinstein (L)

    Harvey Weinstein to Be Arraigned on New Indictment

    Harvey Weinstein is set to appear in court on Monday for an arraignment on a new indictment, the Manhattan D.A.’s office said Thursday. Prosecutors announced last week that they would seek a fresh indictment, which would allow actress Annabella Sciorra to testify at Weinstein’s trial. The move came after Justice James Burke ruled on Aug. [...]

  • AI Technology David Beckham

    How AI Tech Is Changing Dubbing, Making Stars Like David Beckham Multilingual

    David Beckham does not speak Arabic, Hindi or Mandarin. But when the soccer legend starred in a PSA for malaria awareness this spring, he effortlessly switched among these and six other languages, thanks to cutting-edge technology that could soon change how Hollywood localizes its movies and TV shows. The PSA in question was produced with technology [...]

  • Eminem Publisher Sues Spotify, Claiming Copyright

    Eminem Publisher Sues Spotify, Claiming Massive Copyright Infringement

    Eight Mile Style, a publishing company that holds administration rights to Eminem’s early catalog, filed a major copyright infringement lawsuit against Spotify late Thursday, claiming that the streaming giant has no license to host about 250 of Eminem’s songs, while also taking aim at the Music Modernization Act, the federal law enacted last year to [...]

  • iQIYI headquarters building in Beijing

    China’s iQIYI in Talks for Indonesia Expansion

    Chinese streaming firm iQIYI is in negotiations to expand further into Southeast Asia through a venture with Indonesia’s Media Nusantara Citra. iQIYI announced its first step outside Chinese-majority territories in June, when it revealed a linkup in Malaysia with pay-TV leader Astro. It also operates in Taiwan. In April, the company said that it planned [...]

More From Our Brands

Access exclusive content