News Corp. Granted $650M Credit Line
News Corp., the parent company of the Wall Street Journal, the New York Post, and Barrons, has received a $650 million line of revolving credit, according to a regulatory filing by the New York based company. This credit line has been offered to the media giant by JPMorgan Chase & Co., Citigroup Inc., and the Commonwealth Bank of Australia.
This is a massive amount of money, but it could grow even larger. The credit limit may be raised as high as $900 million.
No Other Debt
Rupert Murdoch, the chairman of News Corp., has managed to bring the company to a completely debt free status. He accomplished this by splitting the publishing sector of the company away from the entertainment sector last year.
This debt will be the only debt on record for News Corp., which leaves much to be said for Murdoch’s leadership. According to the paperwork the company filed, it has yet to borrow any money from the credit line.
Unlike a one-time loan, revolving credit allows the borrower to borrow money again once the debt has been repaid. So, each time News Corp. makes a request for money, and then repays the debt, the cash can be borrowed again. This type of credit allows large corporations to help keep the cash flowing smoothly throughout its accounts.
News Corp. In The News
News Corp. has been in the news of late because of its ties to the now defunct News Of The World tabloid. Rebekah Brooks and Andy Coulson, two of the tabloid’s top brass are being tried in London for alleged phone hacking. While Murdoch is no longer professionally tied to Coulson and Brooks, the Wall Street Journal reports that the scandal may impact News Corp. if the judge finds the pair guilty.
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