All Posts Tagged With: "TWX"

Global Investing Roundups Thursday, August 7th, 2008

Freddie Mac’s Grim Quarter; Sprint Swings to 2Q Loss; Time Warner Could Dump AOL; Lonmin Rejects Xstrata Offer; Ambac Posts Record Net Profit; Playboy Stripped of Earnings; Oil Prices Continue Slide

News Corp. Expands Presence in India with $100 Million Investment

News Corp. (NWS), the media giant owned by Rupert Murdoch, will strengthen its presence in India with the creation of six regional television channels.Murdoch has in the past warned that an advertising slowdown in the newspaper and television industries would have a decidedly negative impact on U.S. media businesses. At the same time, however, India’s entertainment market is just beginning to realize its potential.

About 17 million viewers joined India’s burgeoning television market in the first half of 2008. Television advertising responded to the broader audience, growing 26% in the first six months of the year.

The media and entertainment market in India is expected to grow by 18.5% by 2012, according to consultancy firm PwC. That’s the fastest among the BRIC countries (Brazil, Russia, India and China), as China’s rate of growth over the next four years is projected at 14.6%.

Annual revenue for television in India is expected to double to $11.6 billion in that time, as well, according to Media Partners Asia.

“In the long term, the media and advertising outlook for Asia is tremendous as wealth is created and people get educated and you see the emergence of a wealthy middle class,” Reuters quoted Murdoch as saying earlier this week.

News Corp. aims to exploit that remarkable growth potential with a $100 million investment through Star India, a wholly owned subsidiary of the company. Star India broadcasts entertainment and music on channels such as Star One and Star Plus. It also has a 26% stake in Media Content & Communication Services India, an operator of three news channels.

The move could be a precursor to an expansion into India’s movie business as well. The Indian film industry, known as “Bollywood,” produces about 1,000 movies a year, making it one of the most prolific in the world. Warner Group (TWX), The Walt Disney Co. (DIS), Sony Pictures Entertainment (ADR: SNE), and Viacom Inc. (VIA) already have already undertaken joint ventures in India and News Corp.’s 20th Century Fox movie studios won’t want to stand on the sidelines much longer.

News Corp. also plans to nearly triple the size of its editorial staff at its Indian Dow Jones from 25 employees to 70, although government regulations make it difficult to do business, particularly in print.

“We don’t see ourselves taking a stake in print… because they are not available and because we won’t want to take just a 26% stake,” Murdoch said.

Foreign investment in news publishing and broadcasting is limited to 26% by the government.

Still, Murdoch remains positives about India’s prospects.

“We are happy here,” he said “The slower expansion of the economy may slow growth a bit, but in the long term there is a lot of growth to be had.”

Source:  News Corp. Expands Presence in India with $100 Million Investment

Fed Set to Keep Interest Rates on Hold

Christian Hill at Investors Daily Edge looks ahead so some important data releases and earnings reports this week. Top of the bill is today’s Fed meeting, where Bernanke & Co are almost certain to keep rates unchanged…

How High Prices Are Turning Big Oil Into a Bit-Part Player

Big Media are ignoring the real problems in the oil market, says energy expert Dave Gonigam in The Daily Reckoning.

Global Investing Roundups Thursday, July 17th, 2008

Wells Fargo Jumps 32% on Dividend Hike; Crude Falls $10 in Two Days; Home Building Collapses; Gazprom Threatens to Take Belarus to Court; Gannett’s 2nd Quarter Tumble; SK Telecom Eyes up Sprint?; Time Warner Travels to Seattle; Delta’s $1 Billion Loss Turns to Gains

It’s an Ill Wind That Blows, as Earnings Seasons Approaches

Can it be earnings season already? It sure is, but don’t expect too much. With its report tomorrow (Tuesday), Alcoa Inc. (AA) leads off what is expected to be a pretty dismal series of profit reports.

Global Investing Roundups Thursday, July 3rd, 2008

Oil Over $143; GM Falls to 54-year Low; Starbucks Closes 600 Stores; Nikkei Post 10th Straight Loss; United Health Lands in the Emergency Ward; 900 American Flight Attendants on Standby; Blockbuster Abandons Bid; Microsoft at it Again

Yahoo (YHOO) Shares Plummet 10% as Microsoft Walks

Shares in internet search company Yahoo (YHOO) dropped 10% yesterday as the prospect of a deal with Microsoft ended.

According to Bloomberg: “Yahoo said yesterday it scrapped talks after Microsoft refused to pay the $47.5 billion it offered last month. Instead Yang unveiled a partnership with Google Inc. While that deal may add $800 million to annual sales, it may not be enough to revive the stock, said analyst Colin Gillis of Canaccord Adams.”

Microsoft Turns to Facebook After Failed Yahoo Bid

Microsoft Corp. (MSFT) bankers recently contacted Facebook Inc. and made inquiries about purchasing the popular social networking site, the Wall Street Journal reported.

Why Yahoo! Isn’t Worth $37 a Share

Shares of Yahoo! Inc. (YHOO) tumbled 15% yesterday (Monday) to close at $24.37 a share as investors responded to Saturday’s news that Microsoft Corp. (MSFT) would drop its $47.5 billion dollar bid for the beleaguered search engine firm.

But the tough times are just beginning for Yahoo, which must now prove why it is worth more than the lofty price Microsoft was offering.

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