News Corporation (NASDAQ: NWSA) announced that the UK government approved its proposed GBP7.8 billion takeover of British Sky Broadcasting Group after the media giant agreed to spin off the 24-hour news channel, Sky News, into a separate company to avoid a prolonged investigation by the nation’s competition regulator. The deal is expected to add BSkyB’s extensive pay-television operations to the company�s extensive stable of media operations.
The company also recently acquired 100% of Shine Group for an enterprise value of �415 million. The parties have signed a non-binding letter of intent and will now proceed with the regulatory filings required for the transaction. The company proposed that the purchase is part of the expansion strategy for its television operations.
The company reported a significant rise in profit for the second quarter due primarily to higher advertising revenues from Cable Network Programming and Television segments, as well as lower expenses.
The company’s net income for the second quarter increased to $642 million or $0.24 per share from $254 million or $0.10 per share in the previous year. The results for the quarter include impairment and restructuring charges related to the Digital Media Group and Myspace of $0.09 per share and other items of $0.05 per share. The prior-year results include litigation settlement charge at the company’s integrated marketing services business of $0.12 per share and other items of $0.03 per share. Excluding one-time items, net income for the quarter was $756 million or $0.29 per share, compared to $644 million or $0.25 per share in the prior-year quarter. The revenues for the quarter increased to $8.76 billion from $8.68 billion last year. The earnings from affiliates were $67 million, compared to $58 million in the same period a year ago.
The company also declared a dividend of $0.075 per Class A share and Class B share, payable on April 20, 2011, with a record date for determining dividend entitlements of March 16, 2011.
News Corporation stock is currently trading at $17.66. The stock is up 1.70% from its previous close. News Corporation shares stock touched the high of $18.11 and lowest price in today�s session is $17.43. The company stock�s beta is 1.52.
The company stock has traded in the range of $11.61 and $18.11 during the past 52 weeks. The company�s market cap is $46.51 billion.
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