News Corp (NWS): Don’t Bet Against Murdoch

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Murdoch is shifting his focus from business news, in print and on cable, to sports. He is rolling out the Fox Sports 1 cable channel in August and intends to take on ESPN, the jewel of The Walt Disney Company (NYSE:DIS). If any naysayer wants to carp that Murdoch falls in and out of love quickly, so be it. He wants to seize the day and doesn’t worry about criticism.

Murdoch is changing the dynamic of his company, while rolling the dice on sports, at an opportune time. News Corp (NASDAQ:NWS)’s fiscal third-quarter performance was reassuring to the Street. Its revenue and earnings per share topped analysts’ projections.

Barclays analyst DiClemente pointed out the “strong results from two of 21st Century Fox’s most valuable assets — its cable networks and film businesses” as well as “the planned separation remaining on track for the end of the fiscal year in June.”

He continued: “We reiterate our Overweight rating and increase our price target to $37 as we continue to see upside potential on a sum-of-the-parts basis. … We remain optimistic that the launches of Fox Sports 1 and FXX can drive long-term affiliate growth.”

The sports venture may not yield positive results overnight. Clearly, it will take time to challenge a juggernaut such as ESPN. Murdoch and his lieutenants certainly recognize that the Fox News Channel needed time to find an audience.

I have learned not to bet against Murdoch. I was a Dow Jones employee until earlier this year, so I had a ringside seat at News Corp (NASDAQ:NWS). I came to appreciate Murdoch’s resolve. After his company came under siege in the media for the phone-hacking scandal, Murdoch faced the crisis and acted decisively by shutting down News of the World. Crucially, Wall Street didn’t find a good reason to lose faith in News Corp.’s ability on the bottom line.

The article Rupert Murdoch Doesn’t Care What You Think (and That’s Why He Wins) originally appeared on Fool.com.

Fool contributor Jon Friedman owns no shares of any companies mentioned. The Motley Fool recommends Walt Disney and owns shares of Walt Disney.

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