Title: News Corp to buy
property website owner Move for $950m
This article is about Rupert
Murdoch’s News Corp putting forward the idea of buying the US Company Move, who
is that owner of many property websites, for about $1billion to expand it
digital marketing business. The Move’s network of websites is accessed through
move. The article also mentions how News Corp and Move had a Joint press
release where they announced the recent quarterly results. Further on, it states
that News Corp will commence a tender offer for Move shares within 10 days and close
the deal by the end of the year. The article also addresses a rumour where
Murdoch is eyeing to buy more US newspapers, including the Tribune-owned Los Angeles
Times. The chief executive of News Corp stated they wanted to “accelerate News
Corp’s digital and global expansion and contribute to the transformation of our
company, making online real estate a powerful pillar of our portfolio.” And
that they have the intention to “...create the most successful real estate
website in the US.”
Key facts:
Ø News
Corp will buy 80% of Move for $950m (£586m); Australian real estate website REA
Group, which is 61.6% owned by News Corp, is to take the remaining 20% for
about $200m in an all-cash deal unanimously approved by the property company’s
board.
Ø Move.com
reaches about 35m people a month.
Ø 7%
year-on-year increase in revenues to $61.3m, with adjusted earnings before
interest, tax, depreciation and amortisation of $3.1m.
Ø News
Corp said on Tuesday it would pay $21 a share, a premium of 37% on Move’s
closing price in New York on Monday. Move’s shares rose 17.7% to $18 in
premarket trading.
Ø Zillow
agreed to buy Trulia for $3.5bn in July, combining the top two US real estate
websites.
In my opinion this article is
very significant in terms of highlighting how Rupert Murdoch is almost the millionaire
in a Monopoly of the Media and demonstrating the vast amounts of power him and
his company have in persuading companies to hand over their businesses. News
Corp continues to dwarf any or all of its competitors in almost all niches.
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