An early media report regarding News Corporation (ASX: NWS) could make the News Corp share price worth watching today.
Why is the News Corp share price on watch?
The Australian Broadcasting Corporation (ABC) this morning reported that News Corp will stop distributing newspapers to large swathes of regional Queensland. Per the article, News Corp has notified a number of Queensland newsagents that it will stop delivering titles from September.
News Corp reportedly cited the “very high cost” of distribution according to a letter seen by the ABC. Affected titles reportedly include The Courier Mail, The Australian and The Daily Telegraph.
Shares in the Aussie media group will be on watch following this morning’s ABC article on regional distributions. The company’s shares have rocketed over the last 12 months as a top performer on the ASX.
What else has been happening for News Corp?
The News Corp share price surged higher on Friday after an acquisition update from the Aussie media group. News Corp announced it would acquire Investor’s Business Daily (IBD) from O’Neill Capital Management for US$275 million (A$361 million). It appears to be part of News Corp’s focus on digital media given 90% of IBD’s revenue is from digital offerings.
Investors reacted well to the news as the media share rocketed 3.2% higher in early trade before closing the day up 2.0% at $32.12 per share.
The News Corp share price is up 38.7% year to date compared with the S&P/ASX 200 Index (ASX: XJO) which has gained 2.1% so far in 2021.
Foolish takeaway
The News Corp share price is one to watch this morning after a media report regarding its regional distribution plans. This follows a strong Friday surge as News Corp unveiled its latest acquisition, Investor’s Business Daily. The media group continues to deepen its digital media expertise with investors pushing the share price higher.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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