News Corp. Provides More Details on Satellite Unit

News Corp. (NWS) on Tuesday confirmed some of the details regarding the new satellite umbrella company it is in the midst of forming.

At what it called a "new media workshop" in New York for investors, analysts and journalists designed to showcase its digital strategy, News Corp. President and Chief Operating Officer Peter Chernin provided the most details yet on which New Corp. units will be included in the umbrella company, unofficially named PlatCo, and the reasoning behind forming a separate satellite unit.

"The new company will be the largest distribution platform in the world today," Chernin said. The company will include some of what Chernin called News Corp.'s "crown jewels," including its 40% stake in British Sky Broadcasting (BSY), Britain's No. 1 pay-TV provider, as well as its stakes in Italy's Stream and Asia's Star TV, among others. PlatCo will also include the company's 44% stake in TV Guide (TVGIA) and its 80% stake in set-top box manufacturer NDS Group (NNDS).

Combined, Chernin estimated that PlatCo will reach some 300 million households around the world. According to some analyst estimates, that's roughly 60% of all global households.

Chernin said News Corp. will probably unveil PlatCo formally sometime in the next 60 days.

The new company will create new revenue streams and lower "churn,'' or customer turnover, and more "stickiness," or the length of time a customer spends using the various services, Chernin said.

"The assets have been undervalued separately under the News Corp. umbrella,'' Chernin said. The new company, however, forms a currency that will be available should News Corp. seek strategic partners and is also expected to generate significant cost savings, he said.

Chernin did not offer any insight into other potential investors in PlatCo. Last week, during News Corp.'s earnings conference call, he characterized any partnership discussions as "minor." Microsoft (MSFT), Yahoo! (YHOO) and Liberty Media (LMG.A) have been some of the big names mentioned as possible partners in PlatCo.

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