Nomura Securities Reiterates a 'Buy' on News Corp. (NWSA); The Sky Is Not Falling

Nomura Securities reiterates a 'Buy' on News Corp. (NASDAQ: NWSA), PT $21.

Nomura analyst, Michael Nathanson, said, "Yesterday, News Corp, in the latest chapter of the ongoing phone hacking scandal, withdrew its offer to spin-off Sky News as a possible remedy to acquire UK TV broadcaster BSkyB. This led to Jeremy Hunt referring the case to the UK Competition Commission, “an independent public body which conducts in-depth inquiries into mergers, markets and the regulation of the major regulated industries.” This review can now take a minimum of six months and removes the jurisdiction the Department for Culture, Media and Sport previously had over the approval process...A Few Silver Linings from BSkyB Delay...Growing Cash Balance Key Focus...Limited Risk to Losing US TV Licenses...Higher Valuation Outweighs Impact of Reducing Paper Exposure...Shifting to Fundamentals: FY12 Guidance Key Catalyst."

For more ratings news on News Corp. click here and for the rating history of News Corp. click here.

Shares of News Corp. closed at $15.48 yesterday.

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