News Corp Stock Declines Amid Australian Division's Deal with National Rugby League

Strategic Insights -

News Corp's (NWSA) stock is declining 1.52% to $14.21 in midday trading on Friday after its Australian division secured a five-year deal with the National Rugby League. Under the deal, Fox Sports Australia, a subsidiary of News Corp Australia, will show every game live and ad-free in 2016. The deal, worth about $1.8 billion, is the largest media rights deal in the history of the sport. The agreement also includes media company Nine Entertainment and Australian telecommunications company Telstra. News Corp Australia CEO Peter Tonagh stated that the deal will provide fans with live coverage of every game each round, marking a significant milestone in the history of the game.

Key Takeaways:

  • News Corp's Australian division secured a five-year deal with the National Rugby League, worth about $1.8 billion, making it the largest media rights deal in the history of the sport.
  • The deal will provide fans with live and ad-free coverage of every game in 2016, a first in the history of the game.
  • The agreement includes media company Nine Entertainment and Australian telecommunications company Telstra.
  • News Corp Australia CEO Peter Tonagh stated that the deal will be a "big win for the fans, and a big win for the clubs."
  • The deal is a significant milestone in the history of the National Rugby League.
  • TheStreet Ratings Team rates News Corp as a Hold with a ratings score of C, citing mixed factors, including increase in net income and expanding profit margins.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry.
  • News Corp has a debt-to-equity ratio of zero and a quick ratio of 1.50, indicating a strong financial position.
  • The company's current return on equity has decreased from the same quarter one year prior, indicating a minor weakness in the organization.

Statistics:

  • News Corp's stock is declining 1.52% to $14.21 in midday trading on Friday.
  • The deal is worth about $1.8 billion, making it the largest media rights deal in the history of the sport.
  • The net income growth from the same quarter one year ago has increased by 169.2%, rising from $65.00 million to $175.00 million.
  • News Corp has a debt-to-equity ratio of zero and a quick ratio of 1.50.
  • The company's current return on equity has decreased from the same quarter one year prior.

Sources:

  • TheStreet: News Corp (NWSA) Stock Declines Amid Australian Division's Deal with National Rugby League
  • SEC filing: News Corp (NWSA) Form 8-K
  • TheStreet Ratings Team: NEWS CORP (NWSA) Rating