KHC investments begin: 1997
Based: New York, New York, USA
Awards & Medals
2011 - News International placed in the top 10% in the UK's CRC Energy Efficiency scheme
2011 - News International has been awarded the Carbon Trust Standard
Kingdom Holding Company has been a significant investor since 1997 in News Corporation, the world’s third largest media conglomerate. News Corporation has unrivaled global reach with broadcast, cable television, filmed entertainment, newspaper and publishing interests.
While searching for a high-value media investment, KHC identified News Corporation as having a uniquely strong brand and unrivalled global reach in a sector of ever growing potential. Capitalizing on a period of underperformance beginning in the early 1990s, KHC seized an opportunity to invest USD 400m into the corporation in 1997, securing non-voting preferred shares that represented approximately 3% of News Corporation’s worth. This initial interest was extended in 1999, at the request of News International’s management, with an additional USD 200m investment.
Following News Corporation’s acquisition of Fox Entertainment in 2005, the initial 3% non-voting preferred shares holding was converted into a 5.5% holding in News International’s common voting stock to support the management’s efforts to resist a potential hostile bid from Liberty Media.
The future between KHC and News Corporation looks bright, with the Company seeking to leverage its relationship with the media giant to identify new investment opportunities. KHC works closely with News Corporation to find innovative ways to capitalize on the continuing liberalization of entertainment and growing public demand across the Middle East.
In February 2011, News Corporation also acquired a significant stake in the Rotana Group. Under the terms of the agreement, News Corporation acquired newly-issued shares in Rotana.
News Corporation is a diversified global media company with operations in five industry segments: cable network programming; filmed entertainment; television; direct broadcast satellite television; publishing; and other.
News Corporation’s cable network segment produces and licenses programming for distribution on cable television systems and direct broadcast satellite platforms in the U.S and Asia. The segment’s expansive operations include the FOX News Channel and FOX Business Network, FX, STAR and many other popular pay TV channels.
Fox Filmed Entertainment is a global leader in movie production and distribution. Twentieth Century Fox Film is responsible for some of the top grossing movies of all time, including history’s most successful movies, Avatar and Titanic.
Twentieth Century Fox Television, together with the company’s other TV studios, produce and distribute some of the world’s most popular television programming. Series currently in production include Modern Family, Glee, Raising Hope and New Girl, each sold in numerous overseas markets. The company’s TV studios are leaders in animated series, producing The Simpsons, Family Guy, and Futurama. Twentieth Century Fox Television supplies many of the most popular series to each of the major U.S. networks.
News Corporation wholly owns Italy’s most popular pay TV company, SKY Italia, which has more than 4 million subscribers. The company also has significant holdings in British Sky Broadcasting, the U.K.’s largest digital pay TV platform. The company’s publishing segment encompasses: newspapers in the U.K., Australia and the U.S.; The Wall Street Journal and its related publications in the U.S., Europe and Asia; Dow Jones and its information services business; and HarperCollins, one of the top English-language book publishers.
The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and Latin America.
News Corporation had total assets as of June 30, 2012 of approximately USD 57bn and total annual revenues of approximately USD 34bn.