NewsCorp Ponders Fox Sale

22 January 2001

NewsCorp executives are mulling whether to sell subsidiary Fox Family Worldwide network to a rival such as Viacom and Disney.

The media mammoth is currently facing the possibility of paying around $1.5 billion in cash to its partner in Fox Family Haim Saban, who has exercised an option forcing NewsCorp to buy his 49.5% stake [WAMN: 11-Dec-00].

However, NewsCorp insists it will not pay Saban in cash, but will instead seek a partner to replace him or even sell the business outright.

A decision to sell Fox Family, worth an estimated $3bn, would aid NewsCorp in its long-running quest to purchase satellite broadcaster DirecTV. The group is already on a cash-cutting initiative to raise the necessary funds [WAMN: 16-Jan-01].

News source: Financial Times