John Malone's Liberty Media is the second-largest shareholder in News Corp. The proposed deal would reportedly see Murdoch exchange News Corp.'s 38.6% stake in DirecTV, three sports networks, and $550 million in cash for Liberty's 19% voting stake and 15% nonvoting interest in News Corp., The New York Times reported, citing a banker familiar with the deal. The Times added that the $11 billion deal is expected to be signed and announced within two weeks.
"For News Corp. this a significant positive as they accomplish a tax-free exit from an asset that contributed no free cash flow and whose long-term prospects are eroding rapidly," Pali Research analyst Richard Greenfield told Reuters.
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