News Corporation [NWS] - The New Media and UBS Targets

Submitted by Craig Strzelecki on 11 February, 2006 - 11:27

News Corporation was begun to shoulder out "old media" in a comprehensive way with Internet acquisitions and growth. UBS has reported strong performances at Cable and Sky Italia were enough to temper a tough time for Film and weakness in Newspapers. Furthermore, revenues are up 233%: US$160m of the US$6.67bn of revenue was contributed by BSkyB and DTV. Internet acquisitions have proven timely, with momentum building in MySpace as 200,000 new registrations per day are being accepted. UBS reports estimated 2006 profit from MySpace is now US$350m, and suggests News is well-positioned for sustained growth through its reinvigorated internet strategy. UBS warns investors to expect News Corp to remain opportunistic on acquisitions and divestitures around core segments and hence may pose some level of risk. UBS has a buy 2 rating for News Corp [NWS] with a target of $23.