Restructuring transformed corporate market and financial performance to some extent, but the question arises that to what extent does it transform? In order to find the answer to this question let us consider the example of a Worldwide Australian entertainment company “THE NEWS CORPORATION”.
According to Gordon Donaldson, “We have become so familiar with the phrase financial restructuring in the past decade that we often fail to ask why financial structure became such a battleground for contending agents of change.” (Donaldson 1994, pg 6)
The News Corporation was originated in 1923 as a local newspaper. The founder and chief executive officer of News Corporation are Rupert Murdoch. It purchased the UK-based News of the World Organization in 1968. In 1973 it also purchased the San Antonio Express publishing Company of the United States. From 1970 to 1980 the growth and development of TNC expanded with great boost and its interest expanded into book publishing, film making, record production, television broadcasting, transport, and farming. And due to this their debt increased. However, in 1984 TNC aimed to transform into a vertically integrated global media group because of the US-based major geographical and product shift. It transformed in all parts of the media industry from magazines and newspapers to film and Television. It also acquired “Twentieth Century Fox” a film company in 1984. These acquisitions created opportunities for TNC to enlarge and expand its businesses to a multinational company by providing the company with access to a distribution platform, film library, and studios for making television programs and films. After some time when some acquisitions were made by it, TNC became restructured into three principal operating groups:
In the 1990s the economic condition of .the whole world dramatically slowed down and worldwide banks experienced a liquidity crisis.