LONDON (Brand Republic) – News Corp and Liberty Media of the US have signed a share-swapping deal which will see News Corp take over Liberty’s 21% stake in electronic programming guide Gemstar, as Liberty increases its stake in News Corp from 7% to 18%.
The announcement, which came overnight following extensive discussions, saw News Corp’s share price rise 2.8% to $14.35 on the Australian stock exchange, achieving the company’s highest price since March.
The deal is expected to strengthen News Corp’s position ahead of its planned $40bn flotation of SkyGlobal. The company has also expressed an interest in acquiring General Motors’ DirecTV satellite broadcasting division.
News Corp already owns 22% stake in Gemstar. Liberty will also take a stake in SkyGlobal in exchange for its interests in a number of Latin American satellite businesses giving it a stake of around 4.76% in the new entity.
The marketing of SkyGlobal’s offering is expected to begin in October.