News Corp. moving base to U.S.

NEW YORK — Nearly 20 years after Rupert Murdoch gave up his Australian citizenship to become an American, the media conglomerate he controls is following suit.

By the end of the year, News Corp. — owner of the Fox network, Fox News Channel and the 20th Century Fox movie studio — will move its home base from Australia to the United States in a bid to appeal to a wider base of investors. Its primary stock listing will also move to the New York Stock Exchange from the Australian exchange.

The move announced Tuesday marked a milestone for the company, which began more than 50 years ago in Murdoch's native Australia when he inherited a small South Australian newspaper business from his father, Keith Murdoch.

Since then, the company has evolved into a major global media conglomerate with its strongest base in the U.S. market, where it generates more than 75 percent of its revenues and profits.

The reincorporation — which is still subject to approval by regulators, tax authorities and shareholders — represents a loss for the financial community in Australia, where News Corp. owns several major newspapers and is one of the country's leading companies.

Despite its many U.S. holdings, News Corp. has retained its links with its Australian heritage, continuing to hold annual general meetings in the South Australian capital of Adelaide, where it has its registered office. The annual general meeting there later this year will be its last in Australia.

Murdoch said in a conference call that he would miss hosting the annual meetings in Adelaide, but he said the company would still hold annual informational meetings there, which he still intends to chair.

Murdoch said the company's formal status as a foreign issuer in U.S. financial markets was limiting investments from several major institutional investors, some of whom have limits on how much foreign stock they can own.

"That, we believe, is a prime reason our stock trades at a discount to some of our peers, despite our very strong financial performance in the past few years," Murdoch said.

In addition, the move to incorporate in the United States could allow News Corp. to be listed on major U.S. stock indices such as the S&P 500, which could also help widen the company's base of shareholders.

News Corp. indicated that it did not have any immediate plans to change the status of its U.S.-listed subsidiary Fox Entertainment Group, which holds several key entertainment assets including its TV and movie businesses.