MUMBAI: $335 million. That?s the price Rupert Murdoch-controlled News Corp has to fork out to buy The Walt Disney Company-owned ESPN?s 50 per cent stake in their Asian joint-venture ESPN Star Sports (ESS).

Murdoch, keen to take full control of the sports broadcasting empire in Asia, will not have ESPN as the guarantor for $800 million of payment obligations of ESS towards rights acquired for sports events. News Corp will, thus, be the sole guarantor for the rights payment obligations now.These include payments that are to be made for the remaining tenure of the cricket properties like ICC (including World Cup) and Champions League.

"The value News Corp is paying is for gaining market strength in countries like India. The profit of the JV comes from the rest of Asia business. But India is a bigger bet for Murdoch," says a media analyst.

Walt Disney will recognise a gain of approximately $220 million ($165 million after tax) in the first quarter of 2013.

On 7 November, the company sold its 50 per cent equity interest in ESS, which operates 25 television networks and three broadband networks covering 24 markets in Asia.

News Corp had in June announced that it will take full control of ESS following ESPN?s decision to sell its 50 per cent stake in the JV which was formed 17 years back.

Before the JV was formed, ESPN competed with News Corps? Star Sports in India and Asia which saw the bids for sports rights spiral out of control. Hence the decision to come together and exploit the opportunities together in the nascent Asian market.

The stake sale marks the exit of ESPN from the Asian market due to a two-year non-compete clause. However, the company continues to be invested in Asia through its digital business which includes ESPNCricinfo, ESPNFC and ESPN Mobile.

Murdoch has expressed sudden aggression in the sports broadcasting business in the US as well. Gearing up to give ESPN a fight in the US, News Corp acquired in November 49 per cent stake in Yankees Entertainment and Sports Network (Yes), the cable network channel owned by baseball team New York Yankees and its partners.

MUMBAI: News Corporation has decided to name its media and entertainment company as Fox Group while the publishing entity will retain the name News Corporation following the company?s intended separation into two independent, publicly traded companies.

News Corp has also appointed Chase Carey as President and Chief Operating Officer of Fox Group, with James Murdoch continuing in his capacity as Deputy Chief Operating Officer.

The company confirmed that Dow Jones Editor-in-Chief and Managing Editor of The Wall Street Journal Robert Thomson will be the CEO of the new proposed publishing entity.

As part of the restructuring, Tom Mockridge, who has served as Chief Executive Officer of News International since July 2011, will leave the company at the end of the year to pursue outside opportunities. Rupert Murdoch will serve as Chairman of the new News Corporation and Chairman and CEO of Fox Group.

Under their collective leadership, Fox Group will continue to strengthen its creative content businesses and distribution assets, including enhancing its sports portfolio through key investments in Asia, Europe and Latin America.

"This is an incredibly exciting time, for me personally, and for our companies? ambitious futures," said Rupert Murdoch. "The challenges we face in the publishing and media industries are great, but the opportunities are greater."

Murdoch continued, "Under Robert?s leadership at News Corporation, we will build on our traditional mission to inform, entertain and enhance the lives of readers and viewers around the world, and relentlessly drive global growth by promoting excellence and investing in our businesses.

"At Fox Group, what began with the acquisition of a modest film studio over 25 years ago has grown into one of the world?s most successful media companies of all times, defying conventional wisdom at every turn by pursuing excellence in creativity and innovation. Fox Group is perfectly positioned to deliver even more inspiring stories that engage audiences through film, television, sports and digital platforms, driving not only financial results but a lasting imprint on the millions of people who enjoy our various services, in every corner of the world."

Robert Thomson, who has served as Editor-in-Chief of Dow Jones and Managing Editor of The Wall Street Journal since 2008, will begin his work as incoming CEO of the publishing company on 1 January. Thomson commented, "Rupert has been the driving force behind the renaissance of The Wall Street Journal and Dow Jones - which have enjoyed readership and revenue growth in a complicated and evolving media market -- and we intend to lead a broader revenue renaissance for quality content. I am looking forward to working with him and our colleagues around the world to use the company?s esteemed past as a platform for the future. The global value of content is growing as the means of digital distribution multiply, providing us with a remarkable opportunity to profit from our employees? ingenuity and integrity. We have a collection of extremely successful companies, and our goal is to make the new News Corp far more than the sum of its distinguished
parts."

Murdoch and Thomson have announced the following key executives joining the publishing Company:

• Bedi Ajay Singh, who most recently served as President, Finance and Administration & CFO for MGM Studios, will assume the role of Chief Financial Officer. Previously, Singh served as CFO at Gemstar-TV Guide, Novartis Pharmaceuticals and Sony Pictures Entertainment. Prior to 2000, he held a number of positions at News Corporation, including senior finance roles at News International and 20th Century Fox. Singh is a Fellow of the UK Institute of Chartered Accountants and started his business career with Arthur Andersen in London.
• Paul Cheesbrough, currently News Corporation?s Chief Technology Officer, will serve in the same capacity for the new publishing company. Cheesbrough was previously the Chief Information Officer at News International, where he was responsible for the organization?s technology strategy, delivery, transformation programs and digital products. Before joining News International, Cheesbrough served as Chief Information Officer at the Telegraph Media Group, and prior to that was Controller of Digital Media for the BBC.
• Keisha Smith will serve as director of Human Relations. She previously served in various management roles at Morgan Stanley, most recently as the Global Head of Recruiting and Chief Diversity Officer for the Firm. Prior to Morgan Stanley, Smith worked at the Financial Times where she led the staffing initiative for the launch of the FT.com venture.

In addition, Gerson Zweifach, currently General Counsel of News Corporation, will serve in a dual role as both General Counsel of Fox Group, and, for a period of one year following the separation, also of the new News Corporation.

News Corporation also announced that Gerard Baker, currently Deputy Editor-in-Chief of The Wall Street Journal, will succeed Robert Thomson as Editor-in-Chief of Dow Jones and Managing Editor of The Wall Street Journal, effective 1 January. Following a thorough review and interviews with news staff and Company executives, Baker?s appointment was unanimously endorsed by the Dow Jones Special Committee.

News Corporation also announced that effective immediately, Jesse Angelo, the founding Editor-in-Chief of The Daily and long-time Executive Editor of The New York Post, will assume the role of Publisher of The New York Post.

As part of a digital restructuring initiative, the company will cease standalone publication of The Daily iPad app on 15 December, though the brand will live on in other channels.

Technology and other assets from The Daily, including some staff, will be folded into The Post. Paul Carlucci, who has served as Publisher of The New York Post since 2005 will focus exclusively on his role as Chairman of News America Marketing where he continues to generate important profits.

Greg Clayman, Publisher of The Daily, will oversee the Company?s global digital strategy, new digital investments and distribution partnerships, working with CTO Paul Cheesbrough.

As previously announced, Tom Mockridge, who has served as CEO of News International since July 2011, will leave the Company at the end of the year to pursue other opportunities. Mockridge will be replaced by Mike Darcey, who has served as Chief Operating Officer of BSkyB since 2006.

News Corp had on 28 June announced that it intends to pursue the separation of its publishing and its media and entertainment businesses into two distinct publicly traded companies. The global publishing company that would be created through the proposed transaction would consist of the Company?s publishing businesses, its education division and other Australian assets. The global media and entertainment company would consist of the Company?s cable and television assets, filmed entertainment, and direct satellite broadcasting businesses.

The global publishing company that would be created through the proposed transaction would consist of the Company?s current publishing businesses, as well as its education division. Following the separation, each company would maintain two classes of common stock:

Class A Common and Class B Common Voting Shares. The separation is expected to be completed in approximately one year.

MUMBAI: Close on the heels of buying a 49 per cent stake in New York Yankees cable channel, News Corp-owned Fox Sports is believed to be close to signing a 25-year deal with the Los Angeles Dodgers worth $6-7 billion to retain the television rights till 2038.

The baseball team could see its broadcast rights contract jump from $40 million that Fox pays it annually to an average $280 million a year, which would make it one of the richest broadcast contract in sports history.

Fox Sports holds the broadcast rights for Dodgers games till 2013 season.

The offer is three times what Dodgers got from its new owners to come out of bankruptcy. The MB team was bought by a consortium led by legendary Laker Magic Johnson?s bidding group for the Dodgers and Dodger Stadium for $2.15 billion, making it one of the costliest purchases ever paid for a North American sports franchise.

"The Dodgers and Fox have been long-time partners and we?re in discussions now to extend that relationship well into the future," Fox said in a statement. "We?re working hard to reach an agreement that achieves the goals of Dodgers ownership and also makes sense for our business. The discussions are private and ongoing so, out of respect for the process, we?re not going to comment further."

The broadcast rights fee has jumped due to intense competition for local sports programming in Southern California which saw Fox Sports vying with Time Warner Cable (TWC) for the right.

Earlier, Fox had acquired a 49 per cent stake in Yankees Entertainment and Sports Network (Yes), the cable network channel owned by baseball team New York Yankees and its partners. The Yes Network also announced a media rights agreement that will keep Yankees baseball on the Yes Network through 2042.

The News Corp-owned Fox Sports is planning to launch a national cable sports channel to rival ESPN. With Yankees rights already in its pocket, a deal with Dodgers would give Fox the perfect launch pad for the new channel.

MUMBAI: News Corp chairman and CEO Rupert Murdoch has sold his entire Class A non-voting shares to retain his voting stake in the company.

As per regulatory filings, Murdoch sold 418,631 shares on 20 November for more than $10 million at $23.87 to $24.01 per share.

The sale was for estate-planning purposes, reported Bloomberg quoting a source.

The Murdoch family holds 12 per cent but its dual class shareholding structure gives it 40 per cent of the voting power.

It needs to be noted that Murdoch was facing stiff opposition from News Corp shareholders, some of who had proposed sweeping changes to make the management more accountable particularly in the wake of phone hacking scandal in the company?s UK publishing unit.

The investors had also criticised the dual-class structure during the annual general meeting which gives Murdoch family undue power to take their agenda forward.

The company?s Class A shares fell less than 1 percent to $23.82 at the close in New York.

MUMBAI: Rupert-Murdoch controlled News Corporation is gearing up to give ESPN a fight in the US. The company has acquired 49 per cent stake in Yankees Entertainment and Sports Network (Yes), the cable network channel owned by baseball team New York Yankees and its partners.

The Yes Network delivers exclusive live local television coverage of New York Yankees baseball and Brooklyn Nets basketball, as well as other leading local and national sports-related programming. The Yes Network also announced a media rights agreement that will keep Yankees baseball on the Yes Network through 2042.

The media rights agreement is subject to Major League Baseball approval. The investment is expected to close by the end of the calendar year.

Following the stake acquisition, News Corp-owned Fox Sports Media Group will negotiate distribution deals with the operators on behalf of Yes Network as part of a larger package of sports channels which would allow Yes to raise the subscriber fee. However, Fox sports channels will not manage the channel nor will provide local or national sports programming to Yes.

The current owners - Yankee Global Enterprises, Goldman Sachs and other investors - will reduce their ownership in connection with this transaction. After three years, News Corporation may acquire an additional stake in the Yes Network that could bring its ownership to 80 per cent, at which time Yankee Global Enterprises would retain a significant minority stake in the network.

Since its inception in 2002, Yes has grown its footprint to include local availability in New York, Connecticut, New Jersey, and parts of Pennsylvania, as well as national availability on several cable and satellite television distributors. The network currently showcases live Yankees and Nets games to approximately 9 million households in the teams? television territory in the New York area. Outside of the New York area, the Yes Network also distributes a variety of national programming to millions of homes across the country.

"We?ve long been a believer in the unique appeal of sports entertainment. Partnering upstream with rights holders is even more important today in the dynamic media marketplace in which we compete. This is a tremendous opportunity to enhance News Corporation?s industry-leading portfolio of sports properties, while also strategically re-entering the New York market," said News Corporation Deputy COO James Murdoch.

"The Yes Network represents the gold standard for regional sports networks and is a pioneer in sports media. We look forward to working with Yankee Global Enterprises, the network?s management team, and all of our partners to build on a decade of success and take the YES Network to even greater heights."

Yankee Global Enterprises Chairman Hal Steinbrenner said, "This transaction underscores the great value we and our partners created in establishing the Yes Network and sets the network on the path for even greater achievements in the future. We are excited to have News Corporation as a partner. Its stature and acumen in sports broadcasting on a global scale is unmatched. We look forward to the many opportunities for growth and development that this investment by News Corporation will bring to Yes. The Steinbrenner family expects to have a continuing, long-term ownership stake in the Yes Network and we will continue our yearly commitment of fielding a championship caliber team for decades to come."

MUMBAI: News Corp is believed to have concluded the deal for acquisition of 49 per cent stake in cable network channel Yes Network, the channel owned by baseball team New York Yankees and its partners.

The deal with Rupert Murdoch?s News Corp would value the sports channel at $3 billion.

While officials from News Corp and Yes Network have refused to comment on the deal, it is believed that the media conglomerate which runs 20 regional sports networks will have an option to increase its stake to 80 per cent in three to five years.

News Corp, which will have a share in the profits, will negotiate on behalf of Yes Network with the operators as part of a larger package of sports channels which would allow Yes to raise the subscriber fee.

As per the shareholding pattern of Yes, Yankee Global Enterprises owns 34 per cent while Goldman Sachs and Providence Equity own 40 per cent. The remainder 26 per cent is owned by former owners of the Nets.

As per the deal, Fox sports channels will not manage the channel nor will provide local or national sports programming to Yes.