The Top 4 Sources of Value for News Corp

News Corp (NASDAQ:NWS) is a heavily diversified conglomerate with businesses ranging from filmed entertainment, cable networks and broadcasting to newspaper and magazine publishing. It competes with other media companies like Disney (NYSE:DIS), Viacom (NYSE:VIA), CBS (NYSE:CBS) and Time Warner (NYSE:TWX). Given the presence of several businesses under News Corp’s banner, we take a look at the company’s top 4 most valuable divisions.

Our price estimate of $23.21 for News Corp, implies a premium to market price.

1) Fox & FX Cable Networks – represents 38% of the company’s stock value

This business encompasses channels like Fox Sports, Fox News, FX Network and specialty channels focused on extreme sports. These channels earn revenues from a dual stream consisting of subscription and advertising.

See the top forecasts for fox & FX cable networks

2) Fox Studios – represents 19% of the company’s stock value

Under 20th Century Fox and Fox Searchlight Pictures, News Corp produces and distributes movies worldwide. The revenues are earned both from box office and DVD sales.

See the top forecasts for fox studios

3) WSJ, Dow Jones, NY Post & Others – represents 15% of the company’s stock value

This division encompasses News Corp’s newspaper business. Some of the most popular newspapers like New York Post, Wall Street Journal (WSJ), and The Times are owned by News Corp and cover general, financial and local news. The revenue model is based both on subscription and advertising.

See the top forecasts for wsj, dow jones, NY post & others

4) Fox Broadcasting – represents 11% of the company’s stock value

Fox Broadcasting Network is a U.S. broadcast TV network, offering a wide variety of programs and reaching out to a large audience. It is one of the Big 4 in broadcasting, along with NBC, CBS and ABC. The network derives its revenues primarily from advertising.

See the top forecasts for fox broadcasting

See our full analysis for News Corp’s stock here.