What the New News Corp (NWSA) Adds to Your Portfolio

On its own, CBS could allocate resources to programming investments, as well as repurchasing shares and paying a sizable dividend. The network rose to the top of the ratings charts, behind programs such as CSI and NFL broadcasts, supporting viewership and advertising sales gains. It may well not have thrived as such under Viacom’s wing.

On that note, I continue to recommend CBS Corporation (NYSE:CBS) shares for their long-term total-return value.

21st Century Fox a cable and film powerhouse

What remains of the former News Corp is more of a growth company in the same realm as Viacom, albeit more focused on adult audiences and sports networks. Its ownership of FOX News, the FX Network, Regional Sports Networks, the National Geographic Channels, SPEED, and the Big Ten Network should provide revenue and profit growth as cable viewership and distribution expands. Films are a bit more of an erratic sector in terms of income trends. Still, I like the prospects for the Film Entertainment business, behind a strong creative team and possible a sharpened focus on the film assets.

Conclusion

As two companies, the News Corp (NASDAQ:NWSA) businesses might well provide investors with enhanced value. The publishing assets ought to gain greater attention from management, keeping them vital and improving their business models, while we look for growth from the existing cable and film operations at the new 21st Century Fox.

Damon Churchwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Damon is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article What the New News Corp. Adds to Your Portfolio originally appeared on Fool.com and is written by Damon Churchwell.

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