Written By In a statement released on Wednesday, News Corporation confirmed that its proposed deal to buy a real estate portfolio from a private equity firm has fallen through due to the pandemic. This news came as a shock to many, as the deal was expected to be worth billions of dollars and could have been one of the largest transactions in media history. In this article, we will explore the details surrounding this potential transaction—from why it fell apart and how News Corp is reacting to what comes next. Read on to learn more about this story and see how it might affect the company’s future.
News Corp confirms that the real estate deal has fallen through
News Corp has confirmed that its deal to sell its real estate assets has fallen through.
The company had been in talks to sell the properties, which include its headquarters in New York City and offices in London and Los Angeles, to a consortium of buyers led by US private equity firm Blackstone.
However, News Corp said in a statement that “after careful consideration, the parties have mutually agreed to terminate discussions”.
It is not yet clear why the deal fell through, but it is thought that the price was a sticking point.
News Corp added that it “remains fully committed to maximising value for shareholders” and will continue to explore all options for its real estate portfolio.
What this means for News Corp and its shareholders
For the past few months, News Corp has been in talks to sell its global headquarters in New York City. The deal would have seen the media conglomerate offload its real estate assets for a reported $1 billion.
However, the deal has now fallen through and News Corp will remain in its current building. This is a blow for the company, which had hoped to use the proceeds from the sale to invest in other areas of its business.
It is also bad news for shareholders, who had been hoping for a cash injection that would boost the stock price. The shares fell sharply on the news of the failed deal and are likely to come under further pressure in the days ahead.
Why the deal fell through
The deal, which was first reported last week, would have seen News Corp selling its global headquarters at 1211 Avenue of the Americas in New York City to a group of investors led by real estate developer Tishman Speyer for $1.3 billion.
However, the deal has now fallen through, with News Corp confirming the news in a statement released on Tuesday.
While it’s not clear exactly why the deal fell through, it’s likely that the current market conditions played a role. Commercial real estate prices have been softening in recent months, and it’s possible that Tishman Speyer decided they weren’t willing to pay the asking price in today’s market.
What’s next for News Corp?
News Corp has confirmed that its real estate deal with developer Related Companies has fallen through.
The media conglomerate had been in talks to sell its New York City headquarters, located at 1211 Avenue of the Americas, for $1.25 billion. However, News Corp said in a statement that the “parties were unable to reach agreement on economic terms.”
News Corp’s current lease on the property expires in June 2016, and it had been exploring a sale-leaseback deal as a way to free up cash. The company had also been looking at moving to a smaller office space.
It is not clear what News Corp’s next move will be, but the company said it is “evaluating all of its options.”
Conclusion
In the end, News Corp’s real estate deal has fallen through and it is a clear indication of how uncertain the market can be. This news may have come as a shock to many, but with so much volatility in the economy right now, these events are becoming increasingly common. Going forward, businesses will need to be extra vigilant when making important decisions regarding their investments and financial ventures.
