The News Corporation (ASX: NWS) share price is charging higher in morning trade, up 3.24%.
This comes after the S&P/ASX 200 Index (ASX: XJO) listed global media company announced a major acquisition.
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About the acquisition
The News Corp share price is moving higher in morning trade after the company reported it will acquire Investor's Business Daily (IBD) from O'Neil Capital Management for US$275 million (AU$361 million).
News Corp subsidiary Dow Jones will run the newly acquired business, which operates the Investors.com website.
According to the release, IBD generates more than 90% of its revenue from its digital offerings. And revenue has been growing at double-digit levels for the past several years. IBD currently has almost 100,000 digital subscribers, with News Corp reporting a "minimal overlap" with Dow Jones's subscriber list.
Commenting on the acquisition, News Corp CEO Robert Thomson said:
IBD will greatly enhance our e-expertise in finance, with compelling digital coverage, unique tools and high-yielding services. We will be able to cross-sell and up-sell with Dow Jones financial products and provide specialist insights for a knowing business audience… This transformative deal obviously comes as investor interest is surging in stock and bond markets and there is a premium for intelligence, insight and integrity.
Almar Latour, CEO, Dow Jones added, "The prospect of combining our collective skills and strengths, especially our shared legacies of trusted, rigorous journalism and research, opens up a wide range of potential."
Completion of the deal is subject to the standard legal conditions and approvals. News Corp anticipates closing the deal in the fiscal quarter ending 30 June.
News Corp share price snapshot
News Corp shareholders have enjoyed a profitable 12 months, with shares of the media company up 125%. By comparison, the ASX 200 is up by around 34% over that same time.
Year to date, the News Corp share price is up 40%.
News Corp pays an annual dividend yield of 0.7%, unfranked.
