Carey seen as good catch for News Corp.


Rumors abound that DirecTV CEO Chase Carey will return to News Corporation as Rupert Murdoch’s #2 as Peter Chernin exits. If true, Barclays Capital analyst Anthony DiClemente says that would be a “positive” for News Corporation.

According to DiClemente, naming Carey to the post would likely boost News Corporation’s stock price, which had taken a hit due to Chernin’s decision to leave.

DiClemente’s thoughts on the move:

“Carey’s contract as CEO of DTV runs through 12/31/10. DTV is majority owned by Liberty Media, where John Malone is seeking to spin out his 50% share to the public.

If this move were to happen, the addition of Carey would be a positive for News Corp. given his solid track record at DTV and previous experience at News Corp. as CEO of FOX TV, CEO of Sky Global Networks and co-COO of Fox Entertainment.
In his time at NWSA, Carey oversaw the launch and development of Fox Sports, the Fox Cable Networks, and the expansion of NWSA-owned and controlled satellite platforms.

While Chernin was based in LA, Carey would presumably be based in New York. On 5/15, we raised our price target on News Corp. to $12. News Corp. shares offer deep value, in our view.”