Buying News Corp…… Finally

Finally took the plunge and bought the “limited voting” A shares at $8.86 of News Corp. (NWSA) vs the “B” shares (NWS)

Here is some of the reasoning for News Corp from previous posts…

Why the “limited voting” shares vs “B”?

Couple reasons.

1- Murdoch owns 40$ of the voting shares so buying “B” shares really affords the purchaser no advantage as what Ruppert wants, Ruppert will get.

2- Discount. Currently the A shares trade at about a 13% discount to the regular (NWS) shares. Now, that discount has typically been around 8% so I am adding a 5% normalization of value into the mix.

3- Dividends between the two shares are treated equally.

Here is the SEC filing regarding the two classes of shares:
News Corp. A vs B

Here is the “Murdoch Agreement”:
“Murdoch Agreement”

So, if you have “x” amount of money to invest in the stock, the “A” shares are the way to go as they enable you to, as today’s prices purchase 13% more share and participate is essentially equal performance. I am assuming this is the reason they were created, the ensure Ruppert’s control of the company was not challenged. Personally, given his track record, I have no reason to want to.

I have saved some money in case we get a sell-off in shares, if that happens, I will resume buying on the way down.

So there it is, will update later.

Disclosure (“none” means no position):Long NWSA, none in NWS