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Analyst: News Corp. publishing unit worth $5.4B

by Chris Nolter  |  Published March 1, 2012 at 3:12 PM
JamesMurdochNewsCorp.jpgWith James Murdoch (pictured) relinquishing his post at News Corp.'s U.K. publishing unit, the continuing settlements with phone-hacking victims and an ongoing judicial inquiry into media practices and ethics in London, the possibility that the media group would spin off its publishing business is gaining increasing attention.

News Corp. COO Chase Carey acknowledged at a recent conference that the company had discussed a split, but added, "We've run these businesses together and our focus really is on driving forward the business as you see it today."

Were the company to make a break, Marci Ryvicker of Wells Fargo Securities LLC estimates in a Thursday, March 1, report that the publishing arm would be worth $5.4 billion as a standalone business.

The analyst valued the News International unit, which owns Dow Jones, The Wall Street Journal, Barron's, a horde of Australian papers and other assets, at 4.5 times Ebitda. She assigns no value to the U.K. newspapers, including the Sun.

Ryvicker valued book publishing at 5 times Ebitda, and a coupon-insert marketing operation at a multiple of 6.5.

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Tags: Chase Carey | Ebitda | James Murdoch | Marci Ryvicker | News Corp. | phone-hacking | Wells Fargo Securities LLC

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Chris Nolter

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