Twenty-First Century Fox 2008 Annual Report Download - page 100

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NEWSCORP
Notes to the Consolidated Financial Statements (continued)
Note 6 INVESTMENTS
As of June 30, 2008, the Company’s investments were comprised of the following:
Ownership
Percentage 2008 2007
As of June 30, (in millions)
Equity method investments:
British Sky Broadcasting Group plc (1) U.K. DBS operator 39% $ 977 $ 1,193
Premiere AG (2) German pay-TV operator 25% 673 —
Sky Network Television Ltd. New Zealand media company 44% 352 314
The DIRECTV Group, Inc. (3) DBS operator principally in the U.S. — 7,224
Gemstar-TV Guide International, Inc. (4) U.S. print and electronic guidance company — 717
China Network Systems (5) Taiwan cable TV operator — 242
National Geographic Channel (US) (6) U.S. cable channel 67% — 316
Other equity method investments various 766 771
Fair value of available-for-sale investments various 136 234
Other investments various 380 402
$3,284 $11,413
(1) The market value of the Company’s investment in BSkyB was $6,360 million at June 30, 2008.
(2) During fiscal 2008, the Company entered into a series of purchase transactions resulting in the Company owning a 25% interest in Premiere AG
(“Premiere”) at June 30, 2008. The market value of the Company’s investment in Premiere was $627 million at June 30, 2008. (See Fiscal Year
2008 Acquisitions, Disposals and Other Transactions below for further discussion)
(3) In February 2008, the Company closed the transactions contemplated by the Share Exchange Agreement in which the Company exchanged
100% of the stock of a wholly-owned subsidiary that held the Company’s approximate 41% interest in DIRECTV (approximately 470 million
shares) and other assets for Liberty’s entire interest in the Company’s common stock. (See Note 3—Acquisitions, Disposals and Other
Transactions for further discussion of the Share Exchange Agreement)
(4) In May 2008, the Company disposed of its entire interest in Gemstar-TV Guide International (“Gemstar”) in a cash and stock transaction. (See
Fiscal Year 2008 Acquisitions, Disposals and Other Transactions below for further discussion)
(5) During fiscal 2008, the Company and its joint venture partner sold, through a series of transactions, its entire interest in the cable systems in
Taiwan. (See Fiscal Year 2008 Acquisitions, Disposals and Other Transactions below for further discussion)
(6) Effective September 30, 2007, National Geographic Television agreed to give the Company operating control over National Geographic Channel
(US) (“NGC US”) in which the Company has a 67% equity interest. Prior to September 30, 2007, the Company had 67% ownership, but did not
control this entity as it did not hold a majority on its board of directors, was unable to dictate operating decision making and it was not a
variable interest entity. (See Fiscal Year 2008 Acquisitions, Disposals and Other Transactions below for further discussion)
The cost basis, unrealized gains, unrealized losses and fair market value of available-for-sale investments are set forth below:
2008 2007
As of June 30, (in millions)
Cost basis of available-for-sale investments $ 28 $ 29
Accumulated gross unrealized gain 108 205
Fair value of available-for-sale investments $136 $234
Deferred tax liability $ 37 $ 68
During the fiscal years ended June 30, 2008, 2007 and 2006, the Company reclassified gains of $12 million, $2 million and $70 million,
respectively, from accumulated other comprehensive income to the consolidated statements of operations, based on the specific identification
method.
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