News Corp shares rise on earnings report

NEW YORK, May 8 (Reuters) - News Corp (NWSa.N: Quote, Profile, Research) shares rose over 3 percent on Thursday, a day after the company reported strong growth at its television businesses despite a slowing U.S. economy.

The media conglomerate controlled by Rupert Murdoch on Wednesday after the market close posted operating income growth at its TV business of 53 percent for its fiscal third quarter and 17 percent profit growth at its cable TV networks.

Also, despite confirming that News would miss an ambitious target of $1 billion in annual revenue from its Fox Interactive Media (FIM) Internet division, which oversees MySpace, executives said they were making progress in boosting revenue and profitability.

News Corp said it was comfortable with FIM remaining as part of the company and said there was no current interest in participating in discussions to merge it with Time Warner Inc's (TWX.N: Quote, Profile, Research) AOL, Yahoo Inc (YHOO.O: Quote, Profile, Research) or Microsoft Corp (MSFT.O: Quote, Profile, Research).

"It shows their interest in sticking with the online space and that's where advertising is going," Miller Tabak & Co analyst David Joyce said.

News Corp shares rose 58 cents or 3.15 percent, to $19.00 in afternoon trading on the New York Stock Exchange.

(Reporting by Kenneth Li, editing by Gerald E. McCormick)

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