News Corp. confirms Fox Mobile Group sale rumors

Media giant News Corp. confirmed reports its Fox Mobile Group unit is up for sale after taking a $217 million charge on its mobile and outdoor businesses during the company's fiscal fourth quarter. "We are perusing a process to potentially sell [Fox Mobile Group]," News Corp. COO Chase Carey said during an analyst briefing Wednesday. The company has divested several digital media properties in recent months, including Photobucket and Rotten Tomatoes. 

Fox Mobile Group includes the Jamster direct-to-consumer mobile content unit, known internationally as Jamba. News Corp. acquired a 51 percent controlling interest in Jamster in late 2006, forking over $188 million to network infrastructure services provider VeriSign and combining the business with its Fox Mobile Entertainment unit. VeriSign sold its remaining Jamster share to News Corp. in late 2008 for about $200 million.

News Corp. CEO Rupert Murdoch also reaffirmed the company's interest in revamping beleaguered social network MySpace, which continues to lose ground to rival Facebook. "We will see it out for some time yet," Murdoch said. News Corp. digital chief Jonathan Miller recently squashed rumors that MySpace is up for sale, adding plans instead call for a relaunch later this year, with an emphasis on multimedia content like music. 

For more on Fox Mobile Group's future:
- read this NewMediaAge article

Related articles:
News Corp. mulling Jamster sale
News Corp. squashes MySpace sale reports
News Corp. acquires ereader platform Skiff