DOW JONES- $12588.31

S&P 500- $1359.88

NASDAQ- $2853.13

The Walt Disney Co.- $47.42

News Corp.- $23.74

Time Warner Inc.- $44.70

In recent news from my industry, entertainment diversified, according to Forbes, the price estimate for News Corp stands at $28, which implies a premium of more than 15% to the market price. Forbes goes on to say that there is potential for the company to unlock more value if they can sustain margin growth it has seen in the past few years. They believe News Corp could be a $31 stock if its cable networks’ margins continue to increase to a point where they can rival those of Disney, their competitor. News Corp has demonstrated strength in its cable networks business driven by an improvement in advertising and subscription fee. This segment saw 16% growth in revenues in the recent quarter thanks to 16% and 25% growth in affiliate revenues for domestic and international operations, respectively. This growth has resulted from News Corp’s focus on its sports network and original content for other networks such as FX, which has allowed the company to negotiate price increases. As a result, margins have grown too.

From what I have read and have been reading about News Corp over the past couple weeks, I believe that the company can and will continue to grow and succeed and become more valuable over the next few years. The company has made some deals to renew their contract with its CEO that has helped get them to where they are today. Also they have made deals to acquire other companies to expand its reach. Therefore I believe investing in this company would be a smart and profitable decision.