Press release
News Corp Announces Sale of News America Marketing to Charlesbank Capital Partners
Cash proceeds of up to approximately $235m, with News Corp option to retain up to 15% interest in NAM; Divestment is part of News Corp’s simplification
About this update from News Corporation
[{"type":"text","content":"\nCash proceeds of up to approximately $235m, with News Corp option to retain up to 15% interest in NAM; Divestment is part of News Corp’s simplification strategy and will increase transparency within the News & Information Services segment, highlighting the value of key assets \n\n NEW YORK--(BUSINESS WIRE)--\nNews Corp today announced that it has entered into a definitive agreement to sell its News America Marketing business (“NAM”) to Charlesbank Capital Partners, a private equity firm with offices in Boston and New York.\n\n\nThe agreement follows a strategic review of NAM as part of News Corp’s ongoing efforts to optimize its portfolio and simplify the structure of the Company.\n\n\nUnder the terms of the agreement, News Corp will receive cash consideration of up to approximately $235 million, comprised of $50 million in cash upon closing of the transaction and additional deferred cash payments in an aggregate amount of between $125 million and approximately $185 million, depending on the timing of such payments. The deferred consideration is payable on or before the five-year anniversary of closing. Additionally, News Corp has the opportunity to benefit from NAM’s future success through an option to retain up to 15% equity in the business (5% at closing and 10% five-year warrant). The purchase price is subject to customary working capital and other adjustments. Please see News Corp’s Form 8-K to be filed with the Securities and Exchange Commission for more information.\n\n\n“After evaluating the strategic options, our Board has determined that the sale of NAM to Charlesbank is the best course of action to enhance shareholder value and to simplify the structure of News Corp. We expect that the transaction will enable us to highlight the value of our other properties, including Dow Jones,” said Robert Thomson, Chief Executive of News Corp.\n\n\n“When NAM was established, it was dependent on the distribution of coupons via newspaper inserts, but, in recent years, the in-store and digital segments have expanded substantially. The continued strong performance of supermarkets and consumer goods, both core clients of NAM, suggests that the company will have a successful future under its new ownership,” said Mr. Thomson.\n\n\n“We are excited to be acquiring NAM and look forward to working with the management team, employees and pa...