Twenty-First Century Fox 2005 Annual Report Download - page 85

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
> Note 5 Investments
As of June 30, 2005, the Company’s investments were comprised of the following:
Ownership
Percentage
As of June 30,(5)
2005 2004
(in millions)
Equity method investments:
The DIRECTV Group, Inc.(1)(2) DBS operator principally in the U.S. 34% $ 6,688 $ 6,813
Gemstar-TV Guide International, Inc.(2) U.S. print and electronic guidance company 41% 608 604
Regional Programming Partners(3) U.S. partnership holding interests in sporting
networks, teams and arenas 0% (2004 - 40%) — 943
British Sky Broadcasting Group plc(2) U.K. DBS operator 37% (2004 - 35%) 787 495
China Network Systems Taiwan cable TV operator various 225 250
Sky Network Television Ltd. New Zealand media company 44% 254 315
FOXTEL Australian pay TV operator 25% 70 90
National Geographic Channel (US)(4) U.S. cable channel 67% 320 172
National Geographic International International cable channel 50% 133 71
Other equity method investments various 557 493
Cost method investments 626 668
$10,268 $10,914
(1) The Company purchased its 34% interest in The DIRECTV Group, Inc. (“DIRECTV”) during fiscal 2004 (See below).
(2) The market value of the Company’s investment in DIRECTV, Gemstar-TV Guide International, Inc. (“Gemstar-TV Guide”) and British Sky
Broadcasting Group plc (“BSkyB”) was $7,296 million, $635 million and $6,433 million, respectively, as of June 30, 2005.
(3) The Company restructured its investment in RPP during fiscal 2005. (See Note 3 Acquisitions and Disposals)
(4) The Company does not control this entity as it does not hold a majority on the Board, is unable to dominate operating decision-making and is not a
variable interest entity.
(5) The aggregate fair value of those investments whose shares are publicly traded was $15,654 million and $17,276 million as of June 30, 2005 and
2004, respectively.
Equity Earnings of Affiliates
The Company’s share of the income (loss) of each of its equity affiliates is as follows:
2005 2004 2003
For the years ended June 30, (in millions)
British Sky Broadcasting Group plc $ 374 $265 $ 128
The DIRECTV Group, Inc.(a) (186) (57) —
Sky Brasil 49 (37) (77)
Innova 27 (10) (22)
FOXTEL (20) (19) (9)
Stream(b) ——(198)
Other equity affiliates(c) 111 28 (166)
Total equity earnings (losses) of affiliates(d) $ 355 $170 $(344)
(a) The Company’s share of DIRECTV’s losses for the year ended June 30, 2005 includes the Company’s share of DIRECTV’s increased loss from
its sale of PanAmSat resulting from a reduction in the sales proceeds, the Company’s portion of the SPACEWAY program impairment and the
amortization of certain finite-lived intangibles.
(b) In April 2003, the Company acquired a controlling interest in Stream (now SKY Italia). As a result of the acquisition, commencing April 30, 2003,
the Company ceased to equity account its share of Stream’s results.
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