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Friday, March 8, 2013

News Corp gives publishing company $2.6 billion in cash, (NASDAQ: NWSA)

Rupert Murdoch's News Corp will start its largely print-based publishing company with no debt and $2.6 billion in cash when it completes the spinoff.The amount of cash and debt, which analysts generally expected, gives the publishing company a purse to go off and purchase other assets should it choose. News Corp released the details in a regulatory filing on Friday."You can never count out Murdoch when it comes to buying companies," said Gabelli & Co analyst Brett Harriss.He estimates the largely print-based publishing company will have an enterprise value about $13 billion, including the cash; its newspaper assets like The Wall Street Journal and Times of London; book publisher HarperCollins; and its ownership stake in other assets like Australian pay-TV company Foxtel.

News Corporation is a diversified global media company. Shares of NWSA traded higher by 1.74% or $0.52/share to $30.47. In the past year, the shares have traded as low as $13.55 and as high as $24.04. On average, 19309000 shares of NWSA exchange hands on a given day and today's volume is recorded at 8552859.