News Corp's Profits Triple

Selling DirecTV to Liberty Media for $1.7 billion and acquiring the Wall Street Journal helped News Corp post third-quarter profits of $2.7 billion, nearly three times as much as those for the same quarter a year ago. The company also benefited from lower content costs for its TV operations as a result of the writers' strike. Operating income at the Fox network soared 53 percent to $419 million, as the TV division also profited from the Super Bowl telecast in February and the continued success of American Idol, all of which offset the costs of launching the new Fox Business Network cable channel. However, the film unit, including 20th Century Fox, reported disappointing results, down 36 percent to $261 million, with only Alvin and the Chipmunks showing solid box-office returns. Nevertheless, despite the strong results, News Corp shares remained in the doldrums. (They're down 10 percent since the first of the year.) In an interview with Bloomberg News, Gamco Investors fund manager Larry Haverty said, "Hopefully, we who invest in [News Corp] will live long enough to see a point when the market recognizes what is going on."


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