Insights

Nine (ASX:NEC) and News Corp (ASX:NWS) share prices rise after Facebook deal

Nine Entertainment (ASX:NEC) and News Corporation (ASX:NWS) shares are both trading higher after news of deals with Facebook were announced.
The post Nine (ASX:NEC) and News Corp (ASX:NWS) share prices rise after Facebook deal appeared first on The Motley Fool Australia. –

2 businessmen shaking hands, indicating a partnership deal and share price lift

Shares of Nine Entertainment Co Holdings Ltd (ASX: NEC) and News Corporation (ASX: NWS) are both trading higher during Tuesday’s session. At the time of writing, the Nine share price is sitting at $3.03, up 1.34%. Meanwhile, the News Corp share price is trading 0.89% higher at $31.86.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is also in the green today, currently having risen by 0.91%.

The positive share price movements for the media companies come following recent news of both companies signing deals with Facebook Inc (NASDAQ: FB).

Facebook to pay News Corp, signs letter of intent with Nine

News Corp announced today it has come to a three-year agreement with Facebook under which the social media giant will pay News Corp for use of its Australian news content. This includes content from publications including The Australian, The Daily Telegraph, and news.com.au.

The company also announced today that Sky News Australia, a News Corp cable television network, has come to a parallel agreement with Facebook.

News Corp had previously come to an agreement with Facebook for its US content in October 2019.

Commenting on today’s announcement, News Corp CEO, Robert Thomson said:

The agreement with Facebook is a landmark in transforming the terms of trade for journalism and will have a material and meaningful impact on our Australian news businesses.

He added:

We are grateful to the Australian Prime Minister Scott Morrison, Treasurer Josh Frydenberg and the Australian Competition and Consumer Commission Chair Rod Sims and his team for taking a principled stand for publishers, small and large, rural and urban, and for Australia.

Mr Thomson was referring to the recently passed News and Media Bargaining Code legislation enacted by the Australian Government. Facebook and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) owned Google were the initial subjects of the law.

Facebook was so opposed to the code it initially blocked all Australian news from being shared on its platform for five days. The social media company only dropped the news ban when the government agreed to make several amendments to the bill.

Prior to today’s announcement from News Corp, speculation was already circulating yesterday regarding a possible deal between the company and Facebook.

News Corp did not disclose the value of the deal.

The Australian Financial Review (AFR) is reporting today that Nine Entertainment has also signed a letter of intent with the US$780 billion social media company. Nine is unlikely to formally announce a deal, according to the paper.

Facebook News

Facebook intends to showcase news on its latest Australian offering, Facebook News. Launched in 2019, and coming to Australia soon, a section of the platform will be devoted to displaying news stories personalised to individual user preferences. Facebook will pay publishers for this content.

The company had previously excluded Australia from the initial launch of the product due to the aforementioned dispute with the government over its media code.

Nine and News Corp share price snapshots

One year ago, the Nine and News Corp share prices were sitting at $1.17 and $14.76, respectively. If an investor had bought shares in one of these companies at that time, they would be sitting on a tidy 159% or 116% return on investment.

The market capitalisations of Nine and News Corp are $5.1 billion and $1.3 billion, respectively.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Nine (ASX:NEC) and News Corp (ASX:NWS) share prices rise after Facebook deal appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!