News Corp Ltd planning to buy more assets

According to reports News Corporation limited is chasing assets in the Austrlaian print and media group FPC. Owner Michael Hannan has not yet commented officially, but sources claim News Corporation Ltd is ready to pay $A170m for a 49% stake in the community newspapers division, and has sought preliminary regulatory approval. Rival bidders for the magazines business include the Seven Network's Pacific Magazines and the Sensis subsidiary of telco Telstra.

This could turn into a bidding nightmare pushing the prices over the value level. News Corporation has a habit of paying too much when acquiring assets (in my opinion). With the current environment it appears that media stocks are overvalued significantly and I think in a few years time the majority of media stocks which are rallying on takeover talks will be lower
then where they are today.

Of course I could be wrong as there is an argument that previous legilsation may have kept them at a discount price to their true worth. Time will tell.

Good Luck investing.