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Earnings

News Corp 10-K: SDC Price Could Reach $360 Million; Google Payments; Wendi Murdoch’s MySpace Salary

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News Corp. (NYSE: NWS) filed its annual 10-K report with SEC earlier today, and some good details on a few digital-related things, excerpted below:

Dow Jones deal termination price: Dow Jones (NYSE: DJ) would be required to pay the Company a termination fee of $165 million less any previously paid expenses. The transaction is expected to be completed in Q4 of calendar 2007.

News Corp-NBCU NewCo JV: In August 2007, the Company and NBC Universal (NYSE: GE) entered into an agreement with Providence Equity Partners (“Providence”), a media investment firm, pursuant to which Providence will invest $100 million and will acquire a 10% interest in the joint venture. See our previous story on it.

Google-MySpace ad deal: Google (NSDQ: GOOG) is obligated to make guaranteed minimum revenue share payments to FIM of $900 million, of which the $50 million that was due was paid as of June 30, 2007. These guaranteed minimum revenue share payments, which are based on FIM’s achievement of certain traffic and other commitments, are expected to be made through the second quarter of calendar 2010.

Strategic Data Corp Acquisition price: In March 2007, the Company acquired Strategic Data Corporation (“SDC”), a developer of technology that allows websites to target advertisements to specific audiences. The Company acquired SDC for a total purchase price of $50 million, of which $40 million was in cash and $10 million in deferred consideration. The Company may be required to pay up to an additional $310 million through fiscal 2010 contingent upon SDC achieving specified advertising rate growth in future periods. See our previous stories on it: 1, 2 and 3.

MySpace China and Wendi Murodch’s stake and salary: The fees paid to Mrs. Murdoch pursuant to this arrangement are $100,000 per annum and Mrs. Murdoch received $83,333 in the fiscal year ended June 30, 2007. Mrs. Murdoch is a Director of MySpace China Holdings Limited (“MySpace China”), a joint venture in which the Company owns a 51.5% interest on a fully diluted basis, which licenses the technology and brand to the local company in China that operates the MySpace China website. As a Director of MySpace China, Mrs. Murdoch will receive options over 2.5% of the fully diluted shares of MySpace China that will vest over four years under the MySpace China option plan.

Murdoch’s Daughter’s Participation TV company: SMS TV, which is controlled by Ms. Elisabeth Murdoch, the daughter of Mr. K.R. Murdoch, was a party to a production agreement with the Company, for programming that is distributed on the Company’s owned-and-operated television stations. Under a revenue sharing arrangement provided under the terms of the production agreement, SMS TV received approximately $300,000 in the fiscal year 2007. The production agreement was terminated by the Company during fiscal 2007, and the parties are negotiating a termination fee to be paid by the Company to SMS TV.

Aug 23, 2007 4:32 PM ET

Posted In: Money, Earnings, Companies, News Corp.

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