Is News Corp this year’s BP?
July 13, 2011 Leave a comment
The politicians are after them, the public despises them and any reference about News Corp’s activities comes with the preface, “Rupert Murdoch’s News Corp………..”.
When an oil rig exploded and sunk last year in the Gulf of Mexico, BP and Transocean’s stock prices fell 50%.
I thought News Corp stock was already cheap and we like buying bargains.
So far, News Corp’s stock price has fallen 20% and may keep falling for another week or three but there should be a moment when the stock price’s decline has discounted the fiscal damage that this scandal along with the possibility of News not buying 100% of BSkyB, may equate to.
Just like BP, analysing this opportunity doesn’t have to be difficult.
If you believe that the world of business and politics is about being “fair and equitable”, then don’t read any further.
News Corp employs 50,000 people, is a huge political donor and Prince Alwaleed owns 7% of the company.
The Murdoch family owns nearly 12% of it and control over 38% of the voting stock. That’s a big stake, to not exert influence or favours.
