The media giant is not having the best day on the ASX after rumours circulated it’s looking to enter the betting industry.
The post News Corp (ASX:NWS) share price slides amid FOX Bet rumours appeared first on The Motley Fool Australia. –
The News Corporation (ASX: NWS) share price is falling lower during Monday’s session. At the time of writing, shares in the media giant are trading for $32.99 – down 2.4%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently sitting 0.23% higher.
News Corp comes into focus as the Sydney Morning Herald (SMH) reports the company is in talks to launch a new bet making service in Australia.
Let’s take a closer look at today’s report.
Some investors aren’t betting
Investors are driving the News Corp share price lower after SMH reported the company is in talks with a consortium backed by BetMakers Technology Group Ltd (ASX: BET) major shareholder Matthew Tripp to launch FOX Bet in Australia. The betting division would be run by News Corp.
While Mr Tripp is tied to the proposal via the partnering consortium, according to SMH, BetMakers may also be involved by providing “the back-end systems” necessary for the FOX Bet launch in Australia.
Today’s news comes on the back of BetMakers’ $4 billion bid to acquire the wagering and media arm of Tabcorp Holdings Limited (ASX: TAH). According to today’s SMH report, if BetMakers’ bid for the Tabcorp division is successful, the former would takeover FOX Bet from News Corp after it is launched, and then run both betting companies as separate brands within the group.
When BetMakers announced its bid for Tabcorp, its share price sank. Judging by today’s News Corp share price falls, it looks like a similar story is playing out today. It seems many investors are not willing to take a punt on these latest moves in the gaming industry.
BetMakers, which is at this stage only speculatively involved in the rumours, is seeing its share price collapse today. The online bet maker’s shares are currently down a staggering 16.42% to $1.12. The Tabcorp share price is down a comparatively minor 0.68% to $5.135.
News Corp declined to comment when approached by SMH.
News Corp share price snapshot
Over the past 12 months, the News Corp share price has increased by around 84%. In the last 6 months alone, the company’s value has increased by around 37%. News Corp shares are only slightly off their all-time high of $34.33.
Given its current valuation, News Corp has a market capitalisation of $1.22 billion.
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