News Corp. to acquire Elizabeth Murdoch's Shine Group

Source: Los Angeles Times

Expanding its foothold in the European television production market, Rupert Murdoch's News Corp. said it had struck an agreement to buy daughter Elisabeth Murdoch's London production company Shine Group in a stock swap valued at about $674 million.

The acquisition thrusts a third Murdoch into a senior management role at the global media giant and could prompt scrutiny of the Murdoch-controlled News Corp. entering into a transaction that benefits one of the mogul's family members.

... Now Rupert Murdoch will have two of his four adult children in top jobs at the company. Elisabeth, 42, will continue to oversee Shine Group once the operation is swallowed by News Corp., according to people close to the companies. She told her staff Monday that running Shine would remain her focus.

... The price that News Corp. is paying for Shine is likely to draw attention. Shine generated $46 million in profit in 2009, the last year in which the company's financial figures are available. News Corp. agreed to pay more than 10 times the production company's earnings before taxes, interest, depreciation and amortization — on the high end of similar transactions in recent years.

Read more: http://www.latimes.com/business/la-fi-ct-newscorp-shine-20110222,0,953204.story

How about funneling corporate funds to your children's bank accounts? Of course that's not illegal at all, right? Especially when you own the government.

Rp