Not sure about this

Rupert Murdoch desperately battled to prop up the tumbling value of News Corporation on Tuesday, announcing plans for a $5bn (£3bn) share buyback.

Maybe he just thinks the shares are cheap?

And I would assume that none of the family\’s shares would be tendered, so it would increase the family control as well, no?

4 thoughts on “Not sure about this”

  1. share buy backs are also a tax-efficient way to pay what is, essentially, a dividend and so keep shareholders interested. I know Ritchie would disapprove violently of such avoidance, so I commend it to the house.

  2. More amusingly, BSkyB’s share price is plummeting, because potential buyers think it is looking less likely that Murdoch will be able to buy the rest of it, and they value it less without Murdoch.

    So if Murdoch *is* allowed to buy it, he’ll get it cheap!

  3. It’s a win/win for Murdoch. I have mixed feelings about the man, but, say what you like, his response speed belies his advancing years. BSB stock drops – cheaper. BSB stock rises, his (effectively) controlling interest does, too.

    If this drags on until September (and I think it will) then the whole deal could save NI as much as two big ones.

    I was a spectator at the woes which NI went through when the whole thing kicked off and have come to the conclusion that there would be no Sky without him. He bet the farm then, and I think he’ll bet it now. The BBC must be crapping themselves…

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