News Corp. shares climb on OpenAI licensing pact
By Steve Goldstein
News Corp. shares traded higher on Thursday after the media conglomerate inked a content deal with artificial-intelligence leader OpenAI.
The deal with OpenAI allows the ChatGPT provider to have access to current and archived properties including The Wall Street Journal, the New York Post and The Times. The pact also includes news and information from MarketWatch, the publisher of this report.
Financial terms were not disclosed but the Wall Street Journal, citing anonymous sources, said the pact could be worth $250 million, in the form of both cash and credits for use of OpenAI technology.
Other media companies including the Financial Times have struck content deals with the Microsoft-backed AI provider, as has social-media platform Reddit.
News Corp. shares (NWSA) (NWS) rallied 7% in premarket trade.
Ahead of the deal, analysts at JPMorgan said there were pros and cons to media companies striking deals with OpenAI and other providers. The analysts said investors were worried that in providing their deals to AI platforms, it could replace destination news sites altogether.
The analysts said licensing deals are likely to come with opt-outs if subscription or advertising revenue was impaired but are likely to be a net positive financially.
-Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-23-24 0554ET
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