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The News Corporation - Case Study Example

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The News Corporation

Especially, in this year TNC acquired the film company Twentieth Century Fox. The acquisition was drawn attention since it provided the company with access to studios for making films and television programmes, to a film library and to a distribution platform which created opportunities for TNC develop and expand its businesses to a multinational, multimedia company at the forefront of global marketing. From then on, TNC became a citizen of the global village.
On Feb 5th 1989 TNC launched Sky Television in the UK, a direct-to-home (DTH) satellite broadcasting television network. Satellite broadcasting provided the opportunity for broadcaster to increase the footprint (distribution) of any channel, allowing the distribution of programs to more than one country for the first time. It was seen of great importance for the media industry in term of distribution channel.
In the 1990's the economy was slowing down and banks worldwide experienced a liquidity crisis. TNC experienced a bad performance from Ansett Airlines and Twentieth Century Fox. The investment of new printing equipment for the UK resulted in a financial gap. Due to that fact, it was realized that the company needed restructuring to repay all loans. There were a number of key issues with regard to recovering the company:
After experiencing Strengthening the company's balance sheet
Improving and expanding existing businesses
Building new businesses
Nurturing and guiding of company's products
Strategic planning, examining opportunities around the world
After experiencing bad performance in its business and restructuring of the company, TNC has endlessly expanded its business throughout the world and notably as early as 1993,TNC moved into Asia with the acquisition of the Hong Kong-based satellite TV company Star TV, which broadcasts free-to-air over China, India and other 51 other countries. These markets were seen potential for TNC in a long run as they cover around 2/3 of the world's population.
1995 TNC joined with 3 other television, programming, and distribution groups to create a satellite service covering Latin America. This showed joint venture and alliances are in strategic choices of TNC which can help the company be better off in a long run and a beneficial for the parties involved and can offer more values for the customer.
2000 TNC restructured all its satellite interests into a new entity named Sky Global so as to enable the management team to build on the successes of BSkyB and to migrate those to the other satellite platforms of Sky Global.With regard to parenting, TNC was the creation of one man. Rupert Murdoch has been the chief executive since 1953. He is the driving force and most major decisions are made by him. His management style was supplemented by an extremely efficient reporting system. The business is built on Rupert Murdoch's Empire and his vision, ruthlessness and daring. He maintains control of his businesses by looking outside of the business to the regulatory environment that might constrain his activities. Besides that, Murdoch was affected by national regulatory systems and his political friendships have brought him influence in this area. In addition, his personal politics are right ...Show more


The origins of "The News Corporation" lie with the establishment in 1923 of a local newspaper. From 1980, TNC published the only national newspaper, two national magazines and over twenty provincial newspapers. From then on, interests expanded into book publishing, television broadcasting, film making, record production, farming and transport…
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The News Corporation essay example
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