News Corp. said Wednesday that it will issue $600 million in convertible
bonds -- or up to $700 million if overallotments are exercised -- which could be
used to help pay an estimated $2 billion obligation to Fox Family Worldwide CEO
News Corp. was expected to price the bonds -- called 'Liquid Yield Option
Notes,' or 'LYONs' -- Wednesday night. In a conference call with analysts, chief
financial officer David DeVoe said proceeds could be used to settle the Fox
In December, Saban exercised his put option, which would compel News Corp. to
buy his 49.6 percent stake in Fox Family for cash. According to published
reports, Saban has estimated his stake to be worth $2 billion.
'The proceeds [of the offering] would be used for general corporate
purposes,' DeVoe said. 'We have a number of situations we are looking at, one of
which includes Fox Family. We look at this as a very attractive financing.'
Earlier in the conference call, DeVoe said News Corp. and Fox Family are
continuing their negotiations.
'We expect the process to take several months to be resolved, and during that
time, we will look at all feasible options, including finding a partner to buy
Saban's share, buying his share, selling part or even selling the entire Fox
Family Worldwide,' he added.