As they navigate this world, media conglomerates have been either directly investing in or outright acquiring their younger competitors.
This wave of consolidation in digital media parallels consolidation in the larger media business, as mergers—like the potential Gannett and Tronc combination reported in October 2016—reshape the industry.
The emergence of internet-enabled distribution channels, especially social media and search engines, has upended traditional models of news dissemination and challenged long-established media outlets to seek alternative revenue sources.
Companies such as The New York Times, Walt Disney, Fox, and Comcast/NBCUniversal are looking to startups such as Buzz Feed, Vice, Refinery29, and others for new models of engaging audiences.
Preliminary trading on the Australian Securities Exchange of the new News Corp's class B stock began on June 19, 2013 at around per share; a value slightly lower than expected by some analysts.
Robert James Thomson, editor of The Wall Street Journal, was announced as the initial chief operating officer for the company; while Murdoch would not serve as CEO, he remained a chairman and a shareholder of the new News Corp.
Below, we used CB Insights data to study where large media companies have been allocating resources in recent years.We identified 21 media companies that have been the most active investors in private markets in recent years, and used CB Insights tools to analyze their activity.We included companies heavily involved in distribution but excluded Hollywood studios.Many of the companies below have been the target of acquisitions, or were spun off from parent companies at some point in the period under study.
The spin out was structured so that 21st Century Fox would be the legal successor and continuation of the old News Corporation, with the new News Corp being an entirely new company formed by a stock split.
Murdoch stated that performing this split would "unlock the true value of both companies and their distinct assets, enabling investors to benefit from the separate strategic opportunities resulting from more focused management of each division." The move also came in the wake of a series of scandals that had damaged the reputation of multiple News Corporation-owned properties.