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Newscorp and Sotheby’s to Report; Transocean Strike Deal with Icahn

Dan Berman
Hot Stock Minute
Newscorp and Sotheby’s to Report; Transocean Strike Deal with Icahn

Newscorp (NWSA) reports after the closing bell. The company as it has existed since June is essentially a spinoff of the original Newscorp which became 21st Century Fox (FOXA). This entity comprises Rupert Murdoch's newspaper empire. It's expected to swing to a profit with earnings of 5-cents a share. The same businesses lost 16-cents a share a year ago. Shares of Newscorp are up 11% since the company's inception.

Sotheby's (BID) also reports after the closing bell. The auction house is expected to post losses of 47-cents a share, a penny better than a year ago. Those are typical seasonal losses which are offset the rest of the year. The stock is up 49% year-to-date, in large part because activist investor Daniel Loeb has acquired nearly 6% of shares.He's called for changes in company management. The board has since adopted a poison pill.

Transocean (RIG) has just struck a deal with another activist investor: Carl Icahn. The company and Icahn have reached an agreement for the offshore driller to pay a dividend and reduce the number of board seats. The 77-year old billionaire Tweeted about the developments last night, writing, "Great news for Transocean and activism today." Shares of Transocean are up 12% in just the past week. They're up 16% year-to-date.

And as long as we already mentioned Twitter (TWTR), now's an ideal time to give you the latest on the newly issued stock. Shares fell 7.24% on Friday, after that 73% climb when the stock debuted on Thursday. The stock has been down about 1.5% in early trading this morning.