Investor Presentaiton
News Corp is worth at least ~$34 per share
PUBLICLY LISTED INTEREST:
REA Group
61.4% Stake
61.4% of REA - listed on the ASX
REA has a market value of A$15.9 billion
Dow Jones
Book
Publishing
(HarperCollins)
Est. earnings mix: 60% consumer and 40% professional info
Blended peer multiple of The New York Times (16.2x NTM)
and Thomson Reuters (19.4x NTM)
Comps + DCF support even higher value
Penguin Random House agreed to acquire Simon &
Schuster for 14.6x EBITDA - deal blocked by the
Department of Justice in November 2022
Comps + DCF support even higher value
Newspaper peers trade from 5.1x-6.4x EBITDA
Mark-to-Market
Value ($)
Exchange Rate
Value/Share
Value ($)
Value ($)
Value/Share
Value/Share
A$16.1 billion
X 61.4%
X
$0.67 per
A$1.00
$6.7 billion
$11.56/Share
NTM Financials(1)
(x) Multiple
Value ($)
Value/Share
$529 million
EBITDA
X
17.4x EBITDA
=
$9.2 billion
$16.01/Share
$314 million
EBITDA
X
11.0x EBITDA
$3.5 billion
$6.00/Share
•
News Media
More sustainable revenue base (Australian Code). Premium
to peers is deserved, but conservatively valued in-line
DCF supports substantially higher value
$169 million
EBITDA
X
5.8x EBITDA
$978 million
$1.70/Share
.
65% equity interest in FOXTEL
Subscription
Video Services
(FOXTEL)
Move, Inc.
(Realtor.com)
80.0% Stake
Net Debt & Corporate
Adjustments
FOXTEL owes A$700mm to News Corp via loan
Valuing in-line with legacy media peers despite successful
streaming transition
Zillow trades at 4.1x NTM revenue, took 30% discount
$347 million
EBITDA
X
4.5x EBITDA
$472 million
(debt) +
$260 million
(equity)
$1.27/Share
•
News Corp owns 80% of Move, Inc. ("Move")
$619 million
Sales
2.9x Sales
$1.4 billion
$2.47/Share
80% of Move acquired for $760mm; sales grown 3x since
$190mm of overhead capitalized at 13.5x, $298mm balance sheet investments,
$652mm of net debt at News Corp ($2bn of debt and $1.3bn of cash attributed to News Corp)
($2.9) billion
($5.07) / Share
News Corp Fair Market Value:
Note: More comprehensive supporting information, valuation assumptions and 3rd-party analysis included in appendix
IRENIC (1) Bloomberg Consensus segment estimates
$19.5 billion
$33.95/Share
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