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Technology Stocks : News Corp. - NWS

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To: Xenogenetic who started this subject9/27/2000 10:58:04 AM
From: Xenogenetic  Read Replies (1) of 34
 
News Corp. to take top Gemstar-TV Guide stake

biz.yahoo.com

NEW YORK, Sept 27 (Reuters) - Media mogul Rupert Murdoch's News Corp. Ltd. (Australia:NCP.AX - news) (NYSE:NWS - news) said on Wednesday that it would become the top shareholder in Gemstar-TV Guide International Inc. (NasdaqNM:GMST - news) as part of a deal with Liberty Media Group (NYSE:LMGa - news).

News Corp. said in a statement that in exchange, Liberty Media would acquire 121.5 million News Corp American Depositary Receipts (ADRs) and become the company's top non-voting shareholder.

Under the deal, News Corp. will buy Liberty Media's 21 percent stake in Gemstar-TV Guide, a provider of interactive programming guides and publisher of TV Guide magazine. The purchase will boost News Corp.'s stake to 43 percent and make it Gemstar-TV Guide's biggest single shareholder.

Liberty Media will transfer 80 percent of its stake in Gemstar-TV Guide to News Corp in exchange for the ADRs, which allow U.S. trade of foreign shares.

Liberty Media will transfer 20 percent of its Gemstar-TV Guide stake to Sky Global Networks, News Corp.'s pay TV unit, for newly issued shares. Liberty Media also agreed to buy $500 million of Sky Global shares when the company carries out its expected initial public offering.
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