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View Diary: Who is Buying News Corp Stock? (43 comments)

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  •  Question (1+ / 0-)
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    trueblueliberal

    Rupert was going to buy that English Cable channel is he using that money for the buy back or was this stock buyback money set up before the scandal?
         This is important for 2 reasons I think.

    1) if this $5 billion was set up before the cable channel deal blew up then Rupert has even more money just sitting around to buy stock with. Given that America and England don't like him he can't do any big business deals probably for a year so where else can he put that money to good use?

    2) If this $5 billion was set up before the stock buyback well companies stock normally goes up after a big take over deal and stay up for 6 months a year I think. So just why do a stock buy back when the stock should be expected to go up?
        Stock buy backs when a stock is going up already cost the company more money.
        Does Rupert need his stock to be at a certain level to pay back loans he got to buy the WSJ I assume Rupert used his stock as collateral for these loans.
        Look at Enron the stock price dropped below the level the banks loaned the money and the banks then demanded more stock as collateral.
           If this scenario is right then Rupert is a Dead Man Walking.
         

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