News Corporation (often abbreviated to News Corp.) is one of the world's largest media conglomerates A media conglomerate describes companies that own large numbers of companies in various mass media such as television, radio, publishing, movies, and the Internet. The company's Chairman, Chief Executive Officer and Founder is Rupert Murdoch Keith Rupert Murdoch, AC, KCSG , usually known as Rupert Murdoch, is an Australian-born global media mogul. He owns media outlets and is a major shareholder, chairman and managing director of News Corporation (News Corp). Beginning with one newspaper in Adelaide, Murdoch acquired and started other publications in his native Australia before.

News Corporation is a publicly-traded company A publicly-traded company is a private company that has permission to offer its registered securities for sale to the general public, typically through a stock exchange, or occasionally a company whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services listed on the Nasdaq The National Association of Securities Dealers Automated Quotations known as NASDAQ, is an American stock exchange. It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,800 companies and corporations, it has more trading volume per hour than any other stock exchange in the world and the Australian Securities Exchange The Australian Securities Exchange is the primary stock exchange in Australia. The ASX began as separate state-based exchanges established as early as 1861. Today trading is all-electronic and the exchange is a public company, listed on the exchange itself and as a secondary listing on the London Stock Exchange The London Stock Exchange or LSE is a stock exchange located in London, United Kingdom. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as British companies. The LSE is part of the London Stock Exchange Group. Formerly incorporated in South Australia South Australia is a state of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of 983,482 square kilometres , it is the fourth largest of Australia's six states and two territories, the company was re-incorporated into Delaware General Corporation Law after a majority of shareholders approved the move on 12 November 2004.

News Corporation's headquarters is at 1211 Avenue of the Americas (Sixth Ave.) Sixth Avenue is a major avenue in New York City's borough of Manhattan. Although the Avenue's official name was changed to Avenue of the Americas in 1945 by Mayor Fiorello La Guardia New Yorkers remained faithful to the old name. After the name change, the street signs carried a unique design and the streetlights were adorned with "Avenue of, in New York City The media of New York City are internationally influential, and include some of the most important newspapers, largest publishing houses, most prolific television studios, and biggest record companies in the world. New York is the largest hub of media production in the United States and is also the nation's largest media market. It is a major, in the newer 1960s-1970s corridor of the Rockefeller Center Rockefeller Center is a complex of 19 commercial buildings covering 22 acres between 48th and 51st streets in New York City. Built by the Rockefeller family, it is located in the center of Midtown Manhattan, spanning the area between Fifth Avenue and Seventh Avenue. It was declared a National Historic Landmark in 1987. It is the largest privately complex.

Revenue for the year ended 30 June 2008 was US$ The United States dollar is the unit of currency of the United States The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents (200 half-cents prior to 1857)32.996 billion with an operating income of US$ The United States dollar is the unit of currency of the United States The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents (200 half-cents prior to 1857)5.381 billion. Almost 70% of the company's sales come from its US businesses. On 16 January 2009 the Government Accountability Office The Government Accountability Office is the audit, evaluation, and investigative arm of the United States Congress. It is located in the legislative branch of the United States government reported that News Corp has 152 subsidiaries in low-tax or no-tax countries, one of four companies to have more than 100.[5]

Contents

History

News Corp was created in 1980 by Rupert Murdoch Keith Rupert Murdoch, AC, KCSG , usually known as Rupert Murdoch, is an Australian-born global media mogul. He owns media outlets and is a major shareholder, chairman and managing director of News Corporation (News Corp). Beginning with one newspaper in Adelaide, Murdoch acquired and started other publications in his native Australia before as a holding company A holding company is a company that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different for News Limited News Limited was the principal holding for the business interests of Rupert Murdoch until the formation of News Corporation in 1979. News Limited is now a subsidiary of that company. News Limited was created by Murdoch from the assets he inherited in 1952 following the death of his father, Sir Keith Murdoch Sir Keith Arthur Murdoch was an Australian journalist and the father of Rupert Murdoch, and subsequent expansion. The main asset left to him was ownership of the Adelaide Adelaide is the capital and most populous city of the Australian state of South Australia, and is the fifth-largest city in Australia, with a population of more than 1.1 million. It is a coastal city situated on the eastern shores of Gulf St. Vincent, on the Adelaide Plains, north of the Fleurieu Peninsula, between the Gulf St. Vincent and the low- afternoon tabloid, The News The News was an afternoon daily tabloid newspaper in the city of Adelaide, South Australia.

In 1986 and 1987, News Corp (through subsidiary A subsidiary, in business matters, is an entity that is controlled by a separate entity. The controlled entity is called a company, corporation, or limited liability company and in some cases can be a government or state-owned enterprise, and the controlling entity is called its parent . The reason for this distinction is that a lone company News International News International Ltd is a British newspaper publisher owned by Rupert Murdoch's News Corporation. Until June 2002, it was called News International plc) moved to adjust the production process of its British newspapers, over which the printing unions had long maintained a highly restrictive grip.[6] A number of senior Australian media moguls were brought into Murdoch's powerhouse, including John Dux, who was managing director of the South China Morning Post The South China Morning Post , together with its Sunday edition, the Sunday Morning Post, is an English-language Hong Kong newspaper, published by the SCMP Group with a circulation of 104,000. This led to a confrontation with the printing unions NGA The National Graphical Association was a British trade union. It was formed in 1964 by the merger of two long-term rival unions, the Typographical Association and the London Typographical Society. It was joined by a large number of small craft print unions including the Society of Electrotypers and Stereotypers; Press Telegraphists; The Correctors and SOGAT. The move of News International's London operation to Wapping Wapping is a place in the London Borough of Tower Hamlets which forms part of the Docklands to the east of the City of London. It is situated between the north bank of the River Thames and the ancient thoroughfare simply called The Highway. Wapping's proximity to the river has given it a strong maritime character, which it retains through its in the East End resulted in nightly battles outside the new plant. Delivery vans and depots were frequently and violently attacked.[6] Ultimately the unions capitulated.

Moving into the United States

News Corp made its first acquisition in the United States in 1973, when it purchased the San Antonio Express-News The San Antonio Express-News is the daily newspaper of San Antonio, Texas. It is ranked as the third-largest daily newspaper in the state of Texas in terms of circulation, and is one of the leading news sources of South Texas, with offices in Austin, Brownsville, Laredo, and Mexico City. The Express-News is owned by the Hearst Corporation. Soon afterwards it founded the National Star Star was founded by Rupert Murdoch in 1974 as competition to the tabloid National Enquirer with its headquarters in New York City. In the late 1980s it moved its offices to Tarrytown, NY and in 1990 Murdoch sold the magazine to The Enquirer's parent company American Media Inc, a supermarket tabloid Supermarket tabloids are national weekly magazines printed on newsprint in tabloid format, specializing in celebrity news, gossip, astrology, and bizarre stories about ordinary people. Supermarket tabloids are particularly notorious for the over-the-top sensationalizing of stories, the facts of which can be called into question. Tabloids - such as, and in 1976 it purchased the New York Post The New York Post is the 13th-oldest newspaper published in the United States and is generally acknowledged as the oldest to have been published continuously as a daily, although – as is the case with most other papers – its publication has been periodically interrupted by labor actions. Since 1993, it has been owned by media mogul Rupert. In 1981 News Corp bought half of the movie studio 20th Century Fox Twentieth Century Fox Film Corporation , also known as 20th Century Fox, Fox 2000 Pictures, or simply Fox, is one of the six major American film studios. Located in the Century City area of Los Angeles, just west of Beverly Hills, the studio is a subsidiary of News Corporation, the media conglomerate owned by Rupert Murdoch. The company was, buying the other half in 1984. In 1985 News Corp announced it was buying the Metromedia Metromedia was a media company that owned radio and television stations in the United States from 1956 to 1986 group of stations, setting the stage for the launch of a fourth U.S. broadcast network. On 4 September 1985, Murdoch became a naturalised citizen Naturalization/Naturalisation is the acquisition of citizenship or nationality by somebody who was not a citizen or national of that country when he or she was born to satisfy the legal requirement that only United States citizens could own American television stations. In 1986, the Metromedia deal closed, and the Fox Broadcasting Company The Fox Broadcasting Company, commonly referred to as Fox and stylized as FOX, is an American television network owned by Fox Entertainment Group, part of Rupert Murdoch's News Corporation. Since its launch on October 9, 1986, Fox has grown from an upstart "netlet" to the status of the highest-rated broadcast network in the coveted 18–4 was launched. This network, known on-screen as "Fox", can now be picked up in over 96% of U.S. households.

In 1987 News Corp bought The Herald and Weekly Times Ltd The Herald and Weekly Times Limited is a newspaper publishing company based in Melbourne, Australia. It is owned and operated by Rupert Murdoch's News Corporation in Australia, the company that Rupert Murdoch's father had once managed. By 1992, News Corp had amassed huge debts, which forced it to sell many of the American magazine interests it had acquired in the mid-1980s. Much of this debt came from its stake in the Sky Television British Sky Broadcasting (LSE: BSY) is a company that operates Sky Digital, a subscription television service in the UK and Ireland. It produces TV content, and owns several TV channels. It is the UK's largest pay TV provider. More than a third of the equity is owned by News Corporation, an American company chaired by Rupert Murdoch; News satellite network in the UK, which incurred massive losses in its early years of operation, which (like many of its business interests) was heavily subsidised with profits from its other holdings until it was able to force rival satellite operator British Satellite Broadcasting British Satellite Broadcasting was a British television company which provided direct broadcast satellite television services to the United Kingdom. The company was merged with Sky Television in November 1990 to form British Sky Broadcasting (BSkyB) to accept a merger on its terms in 1990. (The merged company, BSkyB British Sky Broadcasting (LSE: BSY) is a company that operates Sky Digital, a subscription television service in the UK and Ireland. It produces TV content, and owns several TV channels. It is the UK's largest pay TV provider. More than a third of the equity is owned by News Corporation, an American company chaired by Rupert Murdoch; News has dominated the British pay-TV market since.)

In 1995, the Fox network became the object of scrutiny from the Federal Communications Commission The Federal Communications Commission is an independent agency of the United States government, created, directed, and empowered by Congressional statute (see 47 U.S.C. § 151 and 47 U.S.C. § 154), and with the majority of its commissioners appointed by the current President. The FCC works towards six strategic goals in the areas of broadband, (FCC) when it was alleged that its Australian base made Murdoch's ownership of Fox illegal. The FCC, however, ruled in Murdoch's favor, stating that his ownership of Fox was in the public's best interests. It was also noted that the stations themselves were owned by a separate company whose chief shareholder was U.S. citizen Murdoch, although nearly all of the stations' equity was controlled by News Corp. In the same year News Corp announced a deal with MCI Communications MCI Communications Corp. was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and ushered in the competitive long distance telephone industry to develop a major news website A website is a collection of related web pages, images, videos or other digital assets that are addressed with a common domain name or IP address in an Internet Protocol-based network. A web site is hosted on at least one web server, accessible via the Internet or a private local area network as well as funding a conservative news magazine, The Weekly Standard The Weekly Standard is a neoconservative American opinion magazine published 48 times per year. It was founded by News Corporation and made its debut on September 16, 1995. Its current editors are founder William Kristol and Fred Barnes. The Weekly Standard produces The Daily Standard with commentary and articles written for the magazine's website. In the same year, News Corp launched the Foxtel Foxtel is an Australian pay television company, formed through a joint venture between Telstra, News Corporation and Consolidated Media Holdings pay television network in Australia in a partnership with Telstra Telstra or Telstra Corporation Ltd , (ASX: TLS, NZX: TLS) is an Australian telecommunications and media company, formerly owned by the Australian government. Telstra is the largest provider of both local and long distance telephone services, mobile services, dialup, wireless, DSL and cable internet access in Australia. Telstra is based in and Publishing and Broadcasting Limited Publishing and Broadcasting Limited was one of Australia's largest companies, with interests primarily in media and gaming. The company demerged in late 2007, spinning out its gaming interests into Crown Limited. PBL, now a stub, renamed itself to Consolidated Media Holdings.

In 1996, Fox established the Fox News Channel Fox News Channel is an American cable news and satellite channel owned by the Fox Entertainment Group, a subsidiary of News Corporation. As of April 2009, it is available to 102 million households in the U.S. and further to viewers internationally, broadcasting primarily out of its New York City studios, a 24-hour cable news News broadcasting is the broadcasting of various news events and other information via television or radio. The content is usually either produced locally in a newsroom, or by a broadcast network. It may also include such additional material as sports coverage, weather forecasts, traffic reports, commentary and other material that the broadcaster station.

In 1999, News Corp significantly expanded its music holdings in Australia by acquiring the controlling share in a leading Australian based label, Michael Gudinski Michael Solomon Gudinski AM is an Australian entrepreneur and businessman currently based in Melbourne who is a leading figure in the Australian music industry. Mostly known for forming the highly successful Australian record company Mushroom Records in 1972 through whom Gudinski signed several generations of Australian musicians and performers's Mushroom Records Mushroom Records is an Australian record company formed by Michael Gudinski and Ray Evans in 1972. After its sale in 1998, it merged into Festival Mushroom Records. As of 2006 it is one of the record labels operated by Warner Bros. Records. It is currently internationally known as WEA International Inc; merging it with already held Festival Records Festival Mushroom Records was an Australian music recording and publishing company which was founded in Sydney in 1952 and operated until 2005. Festival was a wholly owned subsidiary of News Limited from 1961 to 2005, and the company was very successful for most of its fifty-year life, despite the fact that as much as 90% of its annual profit was to create Festival Mushroom Records Festival Mushroom Records was an Australian music recording and publishing company which was founded in Sydney in 1952 and operated until 2005. Festival was a wholly owned subsidiary of News Limited from 1961 to 2005, and the company was very successful for most of its fifty-year life, despite the fact that as much as 90% of its annual profit was (FMR). Both Festival and FMR were managed by Rupert Murdoch's son James Murdoch James Murdoch is the son of media mogul Rupert Murdoch presently Chairman and Chief Executive of News Corporation, Europe and Asia, overseeing assets such as News International (British newspapers), SKY Italia (satellite television), STAR TV (satellite television in Asia), and possibly Astro and its parent company of the same name. He is also non- for several years.

In late 2003, News Corp acquired a 34% stake in DirecTV Group, (formerly: Hughes Electronics), from General Motors for Electronics, operator of the largest American satellite TV system, for US$6 billion.

In 2007 News Corporation reached an agreement to purchase Dow Jones, publishers of the Wall Street Journal, for an estimated $5.6 billion. On 15 October 2007 the corporation spun off a business news channel from Fox News - Fox Business Network.[7] The channel's lawyers were "reviewing all of the fine details of the contract" between Dow Jones and CNBC, said Alexis Glick, Fox Business Network's vice president of business news and the channel's morning anchor. But, she added, "we will actively use" the other Dow Jones properties.[8] "...this new channel is a bit tedious. Somehow, business is more interesting when treated in a business-like way", commented Rob Carrick in 16 October's Toronto Globe and Mail.[9] On 8 February 2007, Murdoch promised guests at the McGraw-Hill Media Summit that, "a Fox channel would be more business-friendly than CNBC. That channel leap[s] on every scandal, or what they think is a scandal", he said.[10]

Shareholders

Corporate governance

The company's Board of Directors consists of 15 individuals:

Office of the chairman

Holdings

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See also: List of assets owned by News Corporation

Books

Newspapers

Magazines

Music and radio

Sport

Studios

TV

News Corp agreed to sell eight of its television stations to Oak Hill Capital Partners for approximately $1.1 billion as of 22 December 2007. The stations are US Fox affiliates.[15]

Broadcast

Satellite television

Cable

Cable channels owned (in whole or part) and operated by News Corporation include:

PLATFORMS

Internet

Other assets

Annual conference

News Corporation organises an annual management conference, discussing media issues related to geopolitics. Attendees include News Corporation executives, senior journalists, Politicians and Celebrities. Previous events were in Cancun, Mexico, and the Hayman Island off the coast of Australia. The events are private and secretive, there are no records available for the agenda or talks given at the conferences, and no uninvited journalists are permitted access.[16]

The 2006 event in Pebble Beach, California was led by Rupert Murdoch. According to a copy of the agenda leaked to the Los Angeles Times and other media accounts,[17] issues discussed related from Europe to broadcasting and new media, terrorism to the national policy.[18] The event included speeches from Rupert Murdoch, Governor Arnold Schwarzenegger, Prime Minister Tony Blair, Bono, Al Gore, Senator John McCain and Bill Clinton while Israeli vice-premier, Shimon Peres, will appear on a panel named Islam and the West. The Other notable attendees include Newt Gingrich and Nicole Kidman.

See also

References

  1. ^ http://news.bbc.co.uk/2/hi/business/3953407.stm
  2. ^ http://www.nytimes.com/2004/04/07/business/market-place-news-corp-plans-to-follow-its-chief-to-the-united-states.html
  3. ^ News Corporation - Annual Report 2008
  4. ^ "Company Profile for News Corporation (NWSA)". http://zenobank.com/index.php?symbol=NWSA&page=quotesearch. Retrieved on 2008-09-30.
  5. ^ 83 Percent of Companies Had Tax-Haven Units GAO Says, Bloomberg.com, 2009-01-16
  6. ^ a b Revolution on Fleet Street, TIME magazine, 1996-08-21.
  7. ^ Fox Business makes TV debut, Hollywood Reporter, 16 October 2007. Accessed: 10-17-2007.
  8. ^ Fox Business Network blazes new trail, USA Today, 14 October 2007. Accessed: 2007-10-17.
  9. ^ Fox Business: Fluff meets financial, Toronto Globe and Mail, 16 October 2007. Accessed: 2007-10-17.
  10. ^ Rupert Murdoch Speaks His Mind, Business Week, Feb 2007.
  11. ^ News Corp and Liberty Media, USA Today, 2006-12-22.
  12. ^ News Corp Murdoch trust sells shares, The Age, 2007-11-16.
  13. ^ Murdoch's son sees pay doubled ahead of exit, Daily Telegraph, 2005-08-26.
  14. ^ Charlie Rose interview with Prince Alwaleed Bin Talal, video.google.com
  15. ^ Kercheval, Nancy and Danielle Rossingh (2007-12-22). "News Corp. to Sell U.S. TV Stations for $1.1 Billion (Update5)". Bloomberg.com. http://www.bloomberg.com/apps/news?pid=20601087&sid=a3tNrZzvfKiM. Retrieved on 2007-12-22.
  16. ^ "Murdoch's Pebble Beach shindig". Australian Broadcasting Corporation. http://www.abc.net.au/rn/mediareport/stories/2006/1711577.htm. Retrieved on 2007-12-01.
  17. ^ "Bono and Blair to join Murdoch on the beach". The Guardian. http://www.guardian.co.uk/media/2006/jul/28/citynews.broadcasting. Retrieved on 2007-12-01.
  18. ^ "The PM, the mogul and the secret agenda". The Guardian. http://observer.guardian.co.uk/politics/story/0,,1827023,00.html. Retrieved on 2007-12-01.

External links

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1WOGX is a partial satellite of WOFL. 2Joint Venture with NBC Universal and The Walt Disney Company. Annual revenue: $23.9 billion USD (▲17% FY 2005) · Employees: 44,000 · Stock symbol: NYSE: NWS, NYSE: NWSa, ASX: , LSE: NCRA See List of assets owned by News Corporation.
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