Fund Manager Summary
The fund managers believe that the outlook for News Corporation Class B Voting CDI is promising following the sale of Foxtel to DAZN for an enterprise value of A$3.4bn, which they consider a significant opportunity. In their opinion, this transaction, valued at 7x FY24 EBITDA, allows News Corp to recoup $0.5bn in shareholder loans and maintain a 6% interest in a rapidly growing DAZN, which has seen a year-on-year revenue increase of 50%. They note that the market had previously assigned zero value to Foxtel, and this sale enhances NWS’s financial position by de-leveraging the company and reducing capital intensity. Furthermore, it allows for a focus on growth divisions such as Dow Jones and Digital Real Estate Services, marking a positive step in NWS’s simplification journey.
Source: Trading View
Commentary From The Managers
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Blackwattle Investment Partners
31 Oct 2025
$46.29
Summary
- Blackwattle Investment Partners continues to monitor the performance of News Corporation (NWS), particularly in relation to its 61% stake in REA Group.
- Recent weakness in NWS was influenced by a slightly weak update from REA Group, reporting a year-on-year decline of -8% in 1Q26 listings.
- Despite the decline, REA is expected to stabilize due to robust house prices, with mean prices in June 2025 showing a +1.4% increase on the quarter.
- Government support measures, such as the expanded 5% Deposit Scheme, are anticipated to aid first home buyers and bolster market activity.
- Management forecasts a broadly flat outcome for the full year, with easing comparatives likely contributing to volume stabilization.
- REA remains the market leader in Australian real estate listings, which is a positive indicator for its long-term prospects.
- The decline in NWS’s share price in October was -10.9%, surpassing REA's decline of -7.8%, indicating potential caution regarding NWS’s other business segments.
- Overall, Blackwattle Investment Partners continues to hold its position, assessing the impact of broader market conditions on NWS's performance.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Blackwattle Investment Partners
31 Oct 2025
$46.29
- Blackwattle Investment Partners continues to monitor the performance of News Corporation (NWS), particularly in relation to its 61% stake in REA Group.
- Recent weakness in NWS was influenced by a slightly weak update from REA Group, reporting a year-on-year decline of -8% in 1Q26 listings.
- Despite the decline, REA is expected to stabilize due to robust house prices, with mean prices in June 2025 showing a +1.4% increase on the quarter.
- Government support measures, such as the expanded 5% Deposit Scheme, are anticipated to aid first home buyers and bolster market activity.
- Management forecasts a broadly flat outcome for the full year, with easing comparatives likely contributing to volume stabilization.
- REA remains the market leader in Australian real estate listings, which is a positive indicator for its long-term prospects.
- The decline in NWS’s share price in October was -10.9%, surpassing REA's decline of -7.8%, indicating potential caution regarding NWS’s other business segments.
- Overall, Blackwattle Investment Partners continues to hold its position, assessing the impact of broader market conditions on NWS's performance.
Summary
Perpetual Asset Management
31 Oct 2025
$46.29
- Perpetual Asset Management notes that News Corporation experienced a decline of -10.9% in October, largely due to investor sentiment surrounding its 61% stake in REA Group, which fell nearly 8%.
- Mixed market appetite ahead of the first quarter FY2026 earnings report led to cautious profit-taking.
- Following the earnings report, the market responded positively, with News Corporation showing a 2% increase in revenue to US$2.1 billion and a 5% rise in EBITDA to US$340 million.
- The company's digital expansion, particularly within the Dow Jones segment, is a key driver, with WSJ and Barron's generating 84% of sales through digital channels.
- Perpetual Asset Management believes REA Group is well-positioned for expansion, offering significant growth opportunities that will diversify News Corp's revenue base.
- The ongoing shift towards digital services and the strength of high-quality assets make News Corp a compelling option for long-term growth.
- Despite being the largest detractor in October, the sell-off is seen as overblown, particularly concerning REA Group's market position and pricing power.
- The current valuation of News Corporation implies a material discount to the market value of its REA stake, with Dow Jones and Harper Collins justifying most of the market cap.
- Post the sale of Foxtel, News Corp provides exposure to three high-quality, growing assets at an attractive valuation.
- The net cash balance sheet supports ongoing buybacks, which are considered highly value-accretive for shareholders at current levels.
Summary
Airlie Funds Management
30 June 2025
$51.90
- Airlie Funds Management highlights News Corporation as a major media conglomerate with significant holdings in various sectors including newspaper publishing, book publishing, digital real estate services, and subscription video services.
- The company features respected brands like the Wall Street Journal, Barron’s, The Sun, The Australian, HarperCollins Publishers, realestate.com.au, realtor.com, and Foxtel.
- News Corp reported a strong 3Q25 result, with Dow Jones being a central focus of the investment thesis since acquisition in 2021, showing a 12% year-on-year profit growth despite a challenging advertising environment.
- News Corp's stock increased by 20% over the year, contributing +2.0% to the Fund's gross performance, reaffirming its status as a core holding since inception.
- The company's key divisions, including Dow Jones, Real Estate Services (notably the stake in ASX-listed REA Group), and Harper Collins, consistently delivered strong results.
- Management has made positive capital management moves, such as divesting Foxtel for a stake in global streaming platform DAZN and repaying shareholder loans.
- Airlie believes that News Corp's core assets represent one of the highest-quality earnings streams on the ASX, which remains materially undervalued by the market.
- For further insights, Airlie Funds Management has provided a detailed analysis of News Corp in the September 2023 Quarterly Commentary.
Summary
Oracle Advisory Group
30 June 2025
$51.90
- Oracle Advisory Group continues to hold News Corporation Class B Voting CDI as it exceeds expectations.
- Despite a doubling of share price over the past two years, Oracle Advisory Group remains bullish, particularly on the Dow Jones division.
- Dow Jones includes high-quality assets like The Wall Street Journal, Barron’s, and B2B data businesses.
- Dow Jones reported a 9% increase in circulation and subscription revenue.
- Total subscribers across WSJ and Barron’s are up 44% since 2021.
- The B2B segment grew revenues by 6%, with Risk & Compliance and Dow Jones Energy up 12% and 10%, respectively.
- Margins in the B2B segment improved to 23%.
- The sale of Foxtel to DAZN for AU$3.4 billion has strengthened News Corp’s balance sheet.
- This sale has shifted the company to a net cash position and earned credit rating upgrades to investment grade.
- The company’s $1 billion stock buyback program, with $750 million already repurchased, enhances earnings growth.
- The Murdoch family’s public dispute over control adds intrigue, with activists pushing for a spinoff of News Corp’s 61% REA Group stake to unlock value.
- Oracle Advisory Group's sum-of-the-parts valuation of $67.80 suggests further upside, reinforcing a positive outlook.
Summary
Centennial Asset Management
16 Apr 2025
$47.69
- Centennial Asset Management believes Zip has the potential to rally in the short term.
- Zip is well positioned to deliver further strong growth in revenues and profitability.
- The US buy now, pay later market remains relatively immature, allowing Zip’s US footprint to grow rapidly.
- New product launches are expected to contribute to the company’s transaction volumes and earnings growth in the coming year.
- Zip’s balance sheet strength and ongoing buyback are expected to support share price performance.
- Zip has surprised the market with better-than-expected earnings over the past year.
- The company has upgraded expectations post the most recent quarter, indicating potential for additional upside earnings risk.
Summary
Airlie Funds Management
31 Dec 2024
$49.50
- Airlie Funds Management acknowledges News Corp's recent sale of its 65% stake in Foxtel to DAZN Group.
- In return, News Corp will receive a 6% interest in DAZN and full repayment of shareholder loans totaling A$578 million.
- There is limited public information on DAZN, making it challenging to determine the value of the 6% stake for shareholders.
- Despite uncertainties, Airlie Funds Management views the deal positively for several reasons:
- DAZN is better positioned to maximize the value of the Foxtel asset through its global scale in sports rights and technology.
- The deal structure allows News Corp shareholders to participate in potential value creation.
- It also helps clean up News Corp's accounts and enables management to focus on its core business units.
Summary
Blackwattle Investment Partners
31 Dec 2024
$49.50
- Blackwattle Investment Partners continues to hold News Corp (NWS) following the sale of Foxtel to DAZN for A$3.4bn.
- The transaction reflects a 7x FY24 EBITDA multiple.
- News Corp will recover its shareholder loans of $0.5bn and retain a 6% interest in DAZN.
- DAZN is experiencing rapid growth at +50% yoy, with over US$3.6bn in revenue.
- The transaction values DAZN at approximately US$17bn, indicating a potential EBIT multiple of 25x-50x.
- Despite assumptions around DAZN's margins, the sale is viewed as a significant positive due to the previous zero value ascribed to Foxtel.
- This deal de-leverages NWS by eliminating Foxtel debt and reduces overall capital intensity.
- Provides a free option on DAZN's potential growth.
- Supports NWS’s simplification strategy, enhancing focus on growth areas including Dow Jones, Digital Real Estate Services, and Book Publishing.
Summary
Blackwattle Investment Partners
31 Oct 2024
$44.37
- Blackwattle Investment Partners views News Corp (NWS) as a top contributor to fund performance.
- The continued quality of News Corp is emphasized in the article "Four Founder-Led Companies Worth Watching".
- Led by Executive Chairman Lachlan Murdoch and CEO Robert Thomson, News Corp has evolved significantly.
- Over 70% of group EBIT now comes from rapidly growing digital assets.
- There is an underappreciation in the market of News Corp’s potential in AI, highlighted by a$250 million licensing deal with OpenAI over five years.
Summary
Airlie Funds Management
30 Sept 2024
$40.34
- Airlie Funds Management continues to monitor the performance of News Corp closely.
- News Corp shares fell by 6% recently.
- The decline was influenced by REA Group making multiple bids for the UK’s Rightmove.
- News Corp holds a 63% stake in REA, which saw an 8% drop in its share price.
- REA ultimately withdrew from the Rightmove negotiations due to lack of engagement from Rightmove before the UK Takeover deadline (September 30).
- Under UK Takeover laws, REA is now required to wait six months before making another bid.
Summary
Airlie Funds Management
30 June 2024
$42.89
- Airlie Funds Management reports a strong performance from News Corp, contributing +3.8% to gross Fund performance.
- The investment thesis focuses on the Dow Jones segment, which has significantly improved in quality over the past decade.
- Dow Jones has transitioned from an advertising to a subscription-led model, a change that the market has largely underappreciated.
- This thesis has been validated as Dow Jones has posted stellar results in recent periods.
- For further details, an in-depth analysis of News Corp is available in the September Fund Update on the Airlie website.
Summary
Blackwattle Investment Partners
31 May 2024
$41.70
- Blackwattle Investment Partners continues to hold an interest in News Corporation Class B Voting CDI.
- News Corp (NWS.AX) has recently added to its performance through a significant deal with OpenAI.
- The deal involves the use of News Corp's news content and is estimated to be worth $250m over five years.
- This agreement reflects the latent value of News Corp’s content generation, which may not be fully captured in current earnings.
- Previous partnerships with companies like Facebook and Google also emphasize this potential value.
- Overall, these developments indicate a positive outlook for the company's content assets.
Summary
Airlie Funds Management
31 Mar 2024
$41.01
- News Corp has been a strong performer for the Fund, contributing +4.9% to gross Fund performance.
- Airlie Funds Management's thesis focuses on the Dow Jones segment, which has improved significantly over the past decade.
- Transition from an advertising to a subscription-led model has been crucial and was believed to be underappreciated by the market.
- This thesis has largely played out, with Dow Jones posting stellar results in recent periods.
- A more in-depth analysis of News Corp is available in the September Fund Update on the Airlie website.
Summary
Airlie Funds Management
31 Dec 2023
$37.82
- Airlie Funds Management identifies News Corp as a quiet achiever in the portfolio.
- The company reported a solid September quarter result.
- Market sentiment shifted following the announcement of Rupert Murdoch stepping down as Executive Chairman.
- There is potential for the company to better highlight and crystallise its inherent value.
- Attention is focused on the company’s initiative to charge A.I. platform providers for using News Corp content.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"It seems News Corp is shedding weight with the Foxtel sale, potentially unlocking value hidden in the shadows. As DAZN surges, this could be the catalyst for a more streamlined focus on growth, but the real question remains: can they sustain that momentum?"
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in News Corporation Class B Voting CDI (ASX:NWS)?
Fund managers including Blackwattle Investment Partners, Centennial Asset Management, Airlie Funds Management, Oracle Advisory Group and Perpetual Asset Management have invested in News Corporation Class B Voting CDI (ASX:NWS).
Why do fund managers invest in News Corporation Class B Voting CDI?
Fund managers are investing in News Corporation Class B Voting CDI due to its strategic sale of Foxtel to DAZN, which enhances financial stability by de-leveraging and reducing capital intensity. This transaction, valued at A$3.4bn, allows News Corp to recover shareholder loans while maintaining a stake in a rapidly growing company. The deal also signals a shift towards simplifying operations and focusing on growth areas such as Dow Jones and Digital Real Estate Services, making it an attractive investment opportunity.
What happened to News Corporation Class B Voting CDI (ASX:NWS)?
Fund managers are investing in News Corporation Class B Voting CDI due to its strategic stake in REA Group, which, despite recent fluctuations, remains a market leader in Australian real estate listings. The company's digital expansion, particularly within the Dow Jones segment, is driving revenue growth, with significant contributions from digital channels. Fund managers view the current share price as undervalued, especially considering the strong performance of its core assets and the potential for REA Group's growth. Additionally, News Corp's solid financials and net cash position support shareholder value through buybacks, making it a compelling long-term investment.