News Corp Stock Price, News & Analysis

According to realtor.com®'s Monthly Housing Trends Report, home buyers face a challenging spring market with 50% fewer homes for sale compared to last year, coupled with record-high prices and rising mortgage rates. The median listing price hit $370,000, a 15.6% increase year-over-year. Inventory decreased 52% nationally, with markets like Austin experiencing a 72.7% drop. While some sellers are expected to enter the market, increasing interest rates may slow price gains. Homes are selling faster, averaging 54 days on the market.

News Corp has agreed to acquire the Houghton Mifflin Harcourt Books & Media segment for $349 million in cash. HMH Books & Media features a robust backlist with over 60% of its 2020 revenues, totaling $191.7 million, generated from these titles. The acquisition will be managed by HarperCollins Publishers, which anticipates over $20 million in annual cost savings and increased revenue synergies. The deal is expected to close by Q4 of fiscal 2021, enhancing HarperCollins’s children's and young adult market presence.

On March 29, 2021, Houghton Mifflin Harcourt (HMH) announced the divestiture of its consumer publishing business, HMH Books & Media, to HarperCollins Publishers for $349 million. This strategic move allows HMH to concentrate on K–12 education and enhance its digital sales, recurring revenue, and free cash flow, while significantly reducing debt. HMH has updated its 2021 outlook, projecting billings between $905 million and $955 million and a free cash flow margin of 9% to 11%. The transaction is expected to close in Q2 2021, subject to regulatory approvals.

According to a recent survey by realtor.com, homeownership remains a key aspiration for millennials, despite challenges such as rising prices and limited inventory. The HarrisX survey of over 800 prospective first-time buyers revealed that 59% aspire to homeownership primarily for investment purposes. Many are searching for over a year, with 44% citing insufficient down payment funds as a barrier. Notably, location is the top desired feature among buyers, while 53% anticipate competition in the housing market. This underscores the ongoing struggle for potential homeowners amid growing demand and limited supply.

The U.S. housing market has thrived amid the pandemic, with realtor.com®'s Housing Market Recovery Index reaching 101.6 as of March 6, 2021. Median listing prices surged by 14.3% year-over-year, while new listings fell 27% compared to the previous year. Overall active inventory dropped by 51%. Despite strong demand, a limited supply continues to challenge the market dynamics. Chief Economist Danielle Hale indicates that while the demand remains robust, rising mortgage rates may test buyer interest, particularly as the vaccine rollout could encourage more sellers to enter the market.

According to a recent analysis by realtor.com®, buying a home is becoming more affordable in many of the nation's largest cities, despite rising home prices. In January 2021, 15 out of the 50 largest metros had buying costs that were equal to or cheaper than renting, up from 13 a year prior. The monthly cost of purchasing a median-priced home rose only 0.2% year-over-year to $1,988, while renting increased 2.4% to $1,727. Notably, markets like Cleveland and Chicago showed lower median listing prices making buying preferable, whereas tech hubs like San Jose saw higher costs associated with buying.

HarperOne announced the publication of AMERICAN PORTRAIT: The Story of Us, Told by Us on June 15, 2021, as a companion book to the PBS documentary series. This project captures the experiences of 14,000 Americans from diverse backgrounds during a historic year. Judith Curr, President of HarperOne, noted its growing significance during 2020's turbulent events. The book, featuring over 400 stories and priced at $29.99, showcases reflections on family, challenges, and dreams, resonating with the nation's spirit.