News Corp. (NYSE: NWS) announced yesterday that it will be transferring the listings for both classes of its stock to the NASDAQ Global Select Market. Currently the company's shares trade on the New York Stock Exchange, which is the more common place for large, established media companies.In the press release announcing the move, News Corp.'s investor relations head Reed Nolte said that "Our move to NASDAQ will ensure that our stockholders have access to the most current trading technology possible. We are confident that NASDAQ's broad offerings and exceptional service, coupled with a cost-effective structure, will provide more value for our stockholders."
That sounds like quite a slap in the face to the NYSE, which is generally seen as the gold standard of trading. But a piece in the Wall Street Journal suggests (subscription required) that News Corp.'s motives may have been more complex: Sources told the Journal that Nasdaq agreed to spend more money advertising on News Corp.'s media outlets as part of the move. An NYSE spokesperson also told the paper that "Nasdaq made News Corporation an offer it couldn't refuse: quite a lot of money to switch its listing to Nasdaq. We would encourage other Nasdaq-listed companies to seek similar arrangements."
What does this mean for long-term shareholders? Absolutely nothing.
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