Sept. 09--Rupert Murdoch's 21st Century Fox is taking a majority stake in National Geographic, the 127-year-old science and exploration magazine.
The deal expands on an 18-year-old partnership between Fox and the National Geographic Society through which they jointly own and operate the National Geographic cable channels.
Fox has agreed to pay $725 million to bring the nonprofit National Geographic Society's media properties into the expanded joint venture, putting the magazine, the TV channels and other media assets under one roof.
The entity, newly named National Geographic Partners, will be run by Declan Moore, a 20-year National Geographic Society veteran. As a result of the deal, the publication will switch to for-profit status.
Fox chief executive James Murdoch said in a statement that putting the National Geographic media assets together "creates vast opportunities and enables this business to be even more successful in a digital environment."
The new venture will be 73% owned by Fox and 27% controlled by the nonprofit organization, while its board of directors will be split evenly between the two companies. The board's chair will alternate each year, starting with National Geographic Society Chief Executive Gary Knell.
The pact will roughly double the National Geographic Society's endowment to $1 billion, enabling it to increase its investment in science research and education, the company said.
"It's clear that the opportunity to grow by more closely aligning our branded content and licensing assets is the right path," said Knell in a statement. "We now will have the scale and reach to continue to fulfill our mission long into the future."
The transaction is expected to close later this year.
