Some analysts to the new companies as GoodCo and BadCo.
The one with the newspapers is BadCo, of course.
News Corp hasn't reported earnings for its fiscal year that just ended, but according to Carr
Michael Nathanson of Nomura Securities estimated in a note to investors that earnings before interest and taxes in the entertainment business would be up 17 percent, while earnings for publishing would be down 44.5 percent for the full year.
The newspaper/education division will start out without any debt and $1 billion in cash on hand, but even that may not be enough:
The Times of London and The Sunday Times are buried in losses. Richard Greenfield, an analyst at BTIG Research, estimated that legal costs associated with the hacking scandal would be over $300 million this year and next. Others estimate that payouts to victims of the scandal could reach as much as $1 billion. Brett Harriss, an analyst with Gabelli & Company, told Bloomberg that he thinks The New York Post loses as much as $110 million a year. The Australian properties have already been publicly targeted for a big reorganization.
Wow - a $110 million a year in losses.
The editorial writers at the Post like to talk in Social Darwinian terms about public schools - succeed at test scores or die.
And yet, the primary Social Darwinian measure of success for their own newspaper - profit - shows that the paper should have been shut down a long time ago.
Without the cash from the entertainment division to bolster the newspaper, it sure looks like the Post is DOA now.