News Corporation is a diversified entertainment company with operations in eight segments: Filmed Entertainment, Television, Cable Network Programming, Direct Broadcast Satellite Television, Magazines and Inserts, Newspapers, Book Publishing and other activities. News Corporation operates in the United States, the United Kingdom, Continental Europe, Australia, Asia and the Pacific Basin. On March 21, 2005, it acquired Fox Entertainment Company Inc.

KHC identified News Corporation as a strong brand and the only truly global organisation in a sector with great potential. Capitalising on a period of underperformance for News Corporation which began in the early 1990s, KHC directly invested $400 million in 1997 to acquire non-voting preferred shares representing approximately three percent of News Corporation's capital. This initial investment led to an additional $200 million investment in News Corporation shares in 1999 at the direct request of News Corporation's management. In 2005, the three percent interest in non-voting preferred shares was converted into a 5.5 percent interest in News Corporation's voting common stock in order to support News Corporation's management against a potential hostile bid from Liberty Media.

KHC intends to continue to leverage its relationship with News Corporation's management to identify new investment opportunities. KHC is currently exploring the potential for media ventures with News Corporation in the Middle East to capitalise on continuing liberalisation of the entertainment industry in the region.