News Corp.’s Satellite TV Unit Files Papers to Spin Off, Go Public

The global satellite television operations of media mogul Rupert Murdoch’s News Corp., as expected, filed Tuesday to spin off from the Australian giant and go public in an initial stock sale in the United States.

The company, Sky Global Networks Inc., will be the world’s biggest distributor of pay-television services, offering programs directly to almost 85 million homes as well as to cable operators and other third-party distributors.

In a much anticipated filing with the U.S. Securities and Exchange Commission, the company said it hoped to raise as much as $100 million, although that is likely a place-marker for a bigger sale.

The company did not say how many shares will be offered or the expected initial price per share in the filing, however those details are expected in future filings.

Sky Global said it plans to use the net proceeds from the offering for debt repayment to one of News Corp.’s units and for other general corporate purposes.

The New York-based company includes News Corp.’s interests in British Sky Broadcasting, TV Guide International, the Italian cable service called Stream, and other satellite operations in Europe, Latin America and Asia.

Revenue in the nine-month period ended March 31 was $295 million compared with $670 million in the same period a year earlier. The company saw a net loss of $174 million in the period, versus a net income of $214 million in the same period of 1999.

News Corp. shares were down 56 cents to $56 Tuesday on the New York Stock Exchange.