What Happened to the News Corp Share Price?
Shares in global media company News Corp [ASX:NWS] took a breather today, lagging the Aussie stock market to close down by nearly 1%. At $17.97 per share, News Corp has shed more than a dollar of value per share since late September.
Why Did This Happen to NWS Shares?
A report from the Commercial Economic Advisory Service of Australia shows that the pay TV ad market shrank by 4.4% in the first six months of this year.
That’s a bad omen for News Corp, which owns pay TV operator Foxtel in a joint venture with Telstra Corporation Ltd [ASX:TLS].
Media consumers have more and more choices nowadays, and clearly many of them are turning away from pay TV. That fact is weighing on the News Corp share price today.
What Now for News Corp?
It’s not all bad news. Foxtel is only one feather in News Corp’s cap…for example, the company owns 61.6% of real estate giant REA Group Ltd [ASX:REA].
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Diversifying its media operations should ensure that News Corp rides out the bumps in any one of its businesses.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
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The post Why News Corp Shares Fell Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
