Twenty-First Century Fox 2007 Annual Report Download - page 84

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NEWS CORPORATION
Notes to the Consolidated Financial Statements (continued)
Note 6 Investments
As of June 30, 2007, the Company’s investments were comprised of the following:
Ownership
Percentage 2007 2006
As of June 30, (in millions)
Equity method investments:
The DIRECTV Group, Inc.(1) DBS operator principally in the U.S. 39%(3) $ 7,224 $ 6,866
Gemstar-TV Guide International, Inc.(1) U.S. print and electronic guidance company 41% 717 647
British Sky Broadcasting Group plc(1) U.K. DBS operator 39%(4) 1,193 1,061
China Network Systems Taiwan cable TV operator various 242 239
Sky Network Television Ltd. New Zealand media company 44% 314 239
National Geographic Channel (US)(2) U.S. cable channel 67% 316 295
National Geographic International(5) International cable channel various(5) 68 99
Other equity method investments various 703 679
Other investments 636 476
$11,413 $10,601
(1) 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 $10,871 million, $861 million and $8,809 million, respectively, as of June 30,
2007.
(2) The Company does not control this entity as it does not hold a majority on its board of directors, is unable to dictate operating
decision-making and it is not a variable interest entity.
(3) The Company’s ownership in DIRECTV increased from approximately 38% at June 30, 2006 to approximately 39% at June 30,
2007 due to DIRECTV’s share buyback program.
(4) The Company’s ownership in BSkyB increased from approximately 38% at June 30, 2006 to approximately 39% at June 30,
2007 due to BSkyB’s share buyback program.
(5) The Company’s ownership percentage in NGC Network (UK) Limited (“NGC UK”) was 25% and 0% as of June 30, 2007 and
June 30, 2006, respectively. Investments held at June 30, 2006 included a 50% ownership interest in NGC Network Interna-
tional LLC (“NGC International”) and a 67% interest in NGC Network Latin America LLC (“NGC Latin America”). Prior to Jan-
uary 1, 2007, NGC International and NGC Latin America were not consolidated as the Company did not hold a majority on their
board of directors, was unable to dictate operating decision-making and they were not variable interest entities. As of January 1,
2007, the results of NGC International and NGC Latin America have been consolidated by the Company. (See Fiscal Year 2007
Acquisitions and Disposals below for further discussion)
The aggregate market value of the Company’s publicly traded investments was approximately $21,608 million and $16,622 million
at June 30, 2007 and June 30, 2006, respectively. During the fiscal year ended June 30, 2007, the Company made mark-to-market
adjustments in fair value for the publicly traded other investments of $188 million which were recorded as an increase in accumu-
lated other comprehensive income.
Equity Earnings of Affiliates
The Company’s share of the income of each of its equity affiliates is as follows:
2007 2006 2005
For the years ended June 30, (in millions)
British Sky Broadcasting Group plc $ 336 $369 $ 374
The DIRECTV Group, Inc.(a) 489 246 (186)
Other DBS equity affiliates 19 108 81
Cable channel equity affiliates 98 68 46
Other equity affiliates 77 97 40
Total equity earnings of affiliates(b) $1,019 $888 $ 355
(a) The Company’s share of DIRECTV’s losses for the fiscal 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 and the Company’s portion of
DIRECTV’s SPACEWAY program impairment.
NEWS CORPORATION 2007 Annual Report 83