News Corporation

The original News Corporation was a multinational media conglomerate established by Rupert Murdoch in 1980 as the corporate vehicle for his Australian newspaper interests. It developed from News Limited, the Australian publishing company associated with Murdoch's family, into one of the most influential media groups of the late twentieth and early twenty-first centuries. Its businesses eventually covered newspapers, magazines, book publishing, television broadcasting, pay television, film production, satellite distribution, digital media, music, education technology and financial journalism. The company's expansion began in Australia and moved decisively into the United States during the 1970s and 1980s. It acquired the New York Post, built a major American film and television presence through 20th Century Fox and the Metromedia television stations, and launched the Fox Broadcasting Company in 1986. Fox gave News Corporation a national commercial television platform that challenged the established American networks. The group also expanded its publishing portfolio through Harper & Row, William Collins and Triangle Publications, and later combined major book-publishing assets under HarperCollins. News Corporation's international strategy relied heavily on satellite and pay television. It helped create BSkyB in the United Kingdom after the combination of Sky Television and British Satellite Broadcasting, acquired the Asian satellite network STAR TV, launched Foxtel in Australia, and took control of DirecTV through its acquisition of Hughes Electronics. These ventures extended the group's reach beyond print and conventional broadcasting, although some also created substantial financial pressure and strategic complexity. During the 1990s and 2000s, the group added Fox News Channel, Fox Business Network, Dow Jones and The Wall Street Journal, Myspace, regional sports assets, digital media operations and education technology. Its holdings gave it an unusually broad presence across news, entertainment and communications. The company was also politically and culturally influential, particularly through its newspapers and cable-news outlets, and faced recurring criticism concerning editorial partisanship, media concentration, labor relations, corporate taxation and governance. The most serious crisis involved allegations that journalists and private investigators associated with News International newspapers had illegally accessed telephone messages and engaged in related misconduct. The closure of the News of the World in 2011, investigations in the United Kingdom and the collapse of News Corporation's proposed full acquisition of BSkyB intensified pressure from shareholders, regulators and politicians. In June 2012, Murdoch announced a restructuring intended to separate publishing from entertainment and to address concerns about the conglomerate's scale and governance. The formal separation was completed on June 28, 2013. The original publicly traded corporation was renamed 21st Century Fox and retained most of the film and television assets, while a newly created News Corp assumed the publishing and Australian broadcasting businesses. The original News Corporation therefore ceased to exist as an independent corporate entity, although many of its brands and successor businesses continued operating under the two successor companies.

News Corporation's roots lay in News Limited, an Australian publishing company whose controlling interest was inherited by Rupert Murdoch after his father Keith Murdoch died in 1952. Murdoch expanded from Adelaide into the national Australian newspaper market and then into the United States. News Limited acquired the San Antonio Express and News in 1973 and purchased the New York Post in 1976, establishing a base for further American expansion. In 1985, News Corporation bought a controlling interest in 20th Century Fox and acquired the Metromedia television stations. These transactions supplied the assets needed to launch Fox Broadcasting Company in 1986. Fox's growth transformed News Corporation from a newspaper-centered company into a major television and film competitor. The group continued buying publishing assets, including Harper & Row and William Collins, which were combined to form HarperCollins, as well as Triangle Publications and its magazine properties. Satellite television became another central pillar. News Corporation's Sky Television merged with British Satellite Broadcasting in 1990 to create BSkyB. The group later acquired STAR TV in Asia, launched Foxtel in Australia and acquired control of Hughes Electronics, whose principal asset was DirecTV. These businesses delivered international distribution but also produced debt and exposure to heavily competitive pay-TV markets. The company diversified further in the 1990s and 2000s. Fox News Channel launched in 1996, followed by Fox Business Network in 2007. News Corporation acquired Dow Jones, publisher of The Wall Street Journal, in 2007; purchased Myspace in 2005; established Fox Interactive Media; expanded into regional sports; and bought Wireless Generation, an education-technology company. It also operated or controlled major newspapers in Australia and Britain, including The Australian, The Times and The Sun. Industrial relations were particularly contentious during the relocation of News International's British newspaper production to Wapping in 1986–87. The move challenged the power of Britain's printing unions and was accompanied by prolonged and sometimes violent conflict before the unions ultimately capitulated. The group's political influence and editorial practices generated continuing debate, while reports concerning tax arrangements and the use of international corporate structures attracted additional criticism. The phone-hacking scandal involving News of the World became the defining crisis of the company's final years. The tabloid closed in July 2011, while police investigations, parliamentary hearings and regulatory scrutiny examined the conduct of journalists, editors and private investigators. News Corporation abandoned its attempt to acquire full control of BSkyB in the same period. Murdoch announced a formal split in 2012, and on June 28, 2013, the original corporation was reorganized: its entertainment assets became 21st Century Fox, while publishing and selected broadcasting operations were transferred to the new News Corp.

1. 2013Corporate separation is completed

   The original News Corporation becomes 21st Century Fox, while a new News Corp receives publishing and Australian broadcasting operations.

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2. 2007Dow Jones is acquired

   The group acquires Dow Jones, adding The Wall Street Journal and other financial-news assets.

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3. 2005Myspace is acquired

   News Corporation buys the social-networking service as part of its digital-media expansion.

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4. 1996Fox News Channel launches

   News Corporation launches a 24-hour American cable news network.

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5. 1990Sky Television and BSB merge

   The British satellite platforms combine to create BSkyB.

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6. 1989HarperCollins is formed

   Harper & Row and William Collins are combined into the HarperCollins publishing group.

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7. 1986Fox Broadcasting Company launches

   Fox begins operations as a new American commercial broadcast network.

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8. 1985Entry into American film and television

   News Corporation acquires a major interest in 20th Century Fox and announces the purchase of Metromedia television stations.

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9. 1980News Corporation is established

   News Corp Limited is formed as the holding company for Rupert Murdoch's expanding media interests.

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A vertically integrated global media conglomerate combining mass-market publishing, news, entertainment, film, television and satellite distribution.

• The TimesNewspaper

  A long-established British national newspaper held through News International. It formed part of News Corporation's United Kingdom newspaper portfolio alongside The Sunday Times and The Sun.

• The Wall Street JournalFinancial newspaper

  The flagship financial-news publication of Dow Jones, acquired by News Corporation in 2007. It strengthened the group's position in business journalism and international financial information.

• Fox News ChannelCable television1996

  A 24-hour American cable news network launched in 1996 to compete with CNN and other established news services. It became one of the group's most prominent political and news brands.

• Fox Broadcasting CompanyBroadcast television1986

  An American commercial television network created from News Corporation's Metromedia station acquisitions. Its launch gave the group a national broadcast platform and challenged the traditional U.S. network structure.

• 20th Century FoxFilm studio

  A major film-production studio acquired through News Corporation's 1985 investment in TCF Holdings. It became a core part of the entertainment assets assigned to 21st Century Fox at the 2013 separation.

• HarperCollinsBook publishing1989

  The international book-publishing group created by combining Harper & Row with William Collins. It represented News Corporation's principal global publishing business.

• STAR TVSatellite television

  A Hong Kong-based satellite television network acquired by News Corporation in stages during the 1990s. It extended the conglomerate's reach across Asian television markets.

• 1986Fox network launch

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  News Corporation used the acquired Metromedia stations to introduce Fox as a new commercial broadcast network, initially using entertainment programming to build a fourth-network position.

  Outcome. Fox became a major U.S. broadcast network.

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• 2012Separate publishing from entertainmentStrategy

  The proposal followed the phone-hacking controversy and shareholder concerns about the conglomerate's structure and long-term value.

  What changed. Murdoch announced the creation of two separately traded companies.

  Aftermath. The separation was completed in 2013, with entertainment assets placed in 21st Century Fox and publishing assets in the new News Corp.

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• 2005Acquire MyspaceM&A

  The group was expanding into online distribution and social media.

  What changed. News Corporation acquired Myspace and incorporated it into its digital-media operations.

  Aftermath. The service later declined against Facebook and was sold in 2011; Murdoch subsequently described the acquisition as a major mistake.

  Acquisition price. 580 million USD (2005)

  • Viacom — Viacom was also reported to have pursued Myspace but did not win the acquisition.
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• 1986Launch Fox Broadcasting CompanyProduct launch

  News Corporation sought to convert its American television-station acquisitions into a national network.

  What changed. It launched Fox using the former Metromedia stations and introduced network programming in stages.

  Aftermath. Fox became a durable competitor to the established U.S. broadcast networks.

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• 2011News of the World phone-hacking scandalControversy

  Investigations found evidence of unlawful phone interception and related misconduct connected to the British tabloid News of the World. The paper was closed, senior figures faced scrutiny, and the controversy affected News Corporation's proposed BSkyB transaction and corporate governance.

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• 1999Criticism over corporate tax practicesControversy

  Commentary based on available accounts questioned the group's low effective tax contribution and its use of complex international structures and offshore jurisdictions.

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• 1986Wapping labor disputeControversy

  The relocation of British newspaper production to Wapping triggered a prolonged confrontation with printing unions, including violent clashes around the new facility, before the unions eventually lost the dispute.

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• 2013Original News Corporation separates into two companies

  The formal separation created a publishing-focused News Corp and renamed the original corporation 21st Century Fox.

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• 2011Myspace is sold after a rapid decline

  News Corporation sold Myspace to Specific Media and Justin Timberlake after the social-networking site lost significant ground to competitors.

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1. News Corporation