Why REA should buy News Corp

Intelligent Investor

Independent Financial Research

Investors are often dogmatic when it comes to takeovers; we want to see businesses expand their core business and not pursue size for its own sake; we want the price to be low and the quality of the target to be high. In short, investors demand a lot – perhaps too much – from takeovers, which is partly why so many ultimately disappoint. There is one act of corporate cannibalism that makes sense, can be done at a decent price and that involves a high quality target: REA Group, you should take over News Corporation. It may not appear sensible or obvious at first blush but consider that News owns a 61% stake in REA and is currently trading at an attractive discount to valuation. The resulting purchase could be the equivalent of REA buying back a lot of stock at a hefty discount to market prices. News Corp is a messy business with a 50% stake in Foxtel, full ownership of Fox Sports, HarperCollins, the Dow Jones businesses and a suite of international newspapers... Read full article here: (VIEW LINK)


MORE ON



Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.