News Broadcasting
Murdoch looking to incorporate News Corp in US
MUMBAI: Reflecting the burgeoning growth of its business in America Rupert Murdoch’s media conglomerate News Corp is planning to shift its incorporation to the US from Australia. The company is thus hoping to stimulate demand for its shares.
At an analyst meeting, News Corp stated that it was seeking to reincorporate in the US by the end of the year through a share-for-share exchange. The company added that the move reflected the current profile of its global business mix.
The company stated that the move made sense as 75 per cent of its revenues and profits are from US based businesses like Fox and now Directv. However the proposed move would not result in a change in strategy.
Through the reincorporation, the company is looking to expand its shareholder base, enhance liquidity and reduce the cost of capital. The company further noted that the US market was the most liquid in the world. However it also plans to maintain a presence in Australian capital markets. The proposed move will also eliminate hurdles for large US institutions from buying and holding stock. The reincorporation could also lead to the company being included in US stock and trading indices.
