News Corp Falls as CFO DeVoe Departs

NEW YORK ( TheStreet) - News Corp. ( NWSA) was falling in mid-day trading as the owner of the Fox network said CFO David DeVoe will retire at the end of June.

DeVoe will leave the New York-based media company after 20 years. John Nallen, Devoe's deputy, will assume the role of CFO at 21st Century Fox, the company that will retain News Corp.'s legacy newspaper assets including the Wall Street Journal following the company's split, also due to occur later this month.

In midday trading Friday, News Corp. shares were falling 0.75% to $31.45.

After the split becomes official, New Corp. will continued to trade under the ticker NWS and NWSA, while 21st Century Fox will be designated by the call letters FOX and FOXA, due to the two types of shares being offered. 21st Century Fox will retain its media and entertainment productions such as the 20th Century Fox movie studio, the Fox broadcast TV network and Fox News Channel while the new News Corp. will assume the company's book publishing and information services such as the Dow Jones NewsWire.

Shares for both 21st Century Fox and News Corp will begin trading on June 19th, 9 days before the split is to occur. The separation is expected to be complete by June 28th.

Current shareholders will be issued shares in both new entities. Rupert Murdoch will act as chairman of both companies, as well as CEO of 21st Century Fox. Robert Thomson, the former managing editor of the Wall Street Journal, will be the CEO of the new News Corp. Murdoch will maintain control of both companies through his 40 percent ownership of Class B stocks.

Analysts have rated News Corp as a buy.

"Strategic flexibility and a healthy BS should allow New News to aggressively invest in evolving the newspaper business model," said Credit Suisse analysts in a report published June 10th. The price target was raised from $4 to $40. 21st Century Fox has been given a higher price target than News Corp, $34 now compared to new News' $24 post-split.

Written by Robert Arenella in New York

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