It looks like it is out with the old, in with the old at News Corp. (NYSE: NWS), as former executive Chase Carey is returning to the company in the role of deputy chairman and chief operating officer. Carey has served as the CEO of DirecTV Group (NYSE: DTV) for the past six years, but was the co-chief operating officer for NWS from 1996 through 2002. Carey will replace COO Peter Chernin, who announced in February that he would depart NWS when his contract runs out at the end of June. It is no secret that NWS has struggled since the economic crisis started, as weakness in the company's catalog of DVDs have driven the stock lower. Carey helped the company become a "truly viable fourth broadcast network" by helping Fox land NFL games, and helping launch Fox News Channel, FX, and the National Geographic Channel.
NWS Chairman Rupert Murdoch said, "Chase has been one of my closest advisers and friends for years, and I am delighted we'll once again be working together across our businesses as we face the challenges and great opportunities ahead."
Quite honestly, 2009 has been a decent year for NWS, as the shares have rallied from the nadir set in March. Thanks to this northern march, the stock has come to face the $12 level and its 20-month moving average. These two levels could act as resistance, but today's news could spark a rally. Investors love when an executive responsible for helping a company grow returns to help a struggling firm, let's see if that is the case with NWS.
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