News Corp mulls American marketing operation sale

News Corp could sell off its American marketing operation as part of broader efforts to simplify its business structure.

Chief executive of News Corporation, Robert Thomson. Picture: Aaron Francis

News Corp could sell off its American marketing operation as part of broader efforts to simplify its business structure.

The media business, which publishes The Australian, announced it is “actively evaluating strategic options” for News America Marketing (NAM), flagging a potential sale of the division.

News Corp said the sale of NAM, which provides in-store marketing and newspaper inserts for brands and retailers, would allow the company to focus on areas such as distribution of premium content, and global digital real estate services.

Allen and Company has been recruited as a financial adviser to assist with the review and potential sale.

News Corp chief executive Robert Thomson said the strategic review would “enhance shareholder value.

“Candidly, the NAM business has been transformed from one based on newspaper inserts to one of the leading in-store marketing companies in the US, with a growing digital component and an expanding array of tech partners,” Mr Thomson said.

“NAM is a crucial player in the digital evolution of retail media and an innovator in in-store marketing.”

In the latest financial quarter, NAM posted sales of $US238 million ($346 million), down 8 per cent year on year due to low home-delivered revenue declines. It made up 9.7 per cent of News Corp’s total revenue for the quarter.

Over the last decade, the division has been caught in two major lawsuits. In 2016, News Corp reached a $US250 million settlement in a lawsuit involving consumer brands, and in 2010, News Corp settled a lawsuit brought by competitor Valassis Communications, for $500 million.