Feds charge former hedge fund manager in big insider-trading case

WASHINGTON -- Federal prosecutors on Tuesday charged a former hedge fund portfolio manager with securities fraud in connection with what they said was the most lucrative insider-trading case ever prosecuted.

In complaints filed in New York, authorities said investment advisors and hedge funds made more than $276 million in illegal profits or avoided losses by trading before the announcement in 2008 of negative results from clinical trials for an Alzheimer's disease drug being developed by Elan Corp. and Wyeth.

Prosecutors charged Mathew Martoma, a former portfolio manager at CR Intrinsic, an unregistered investment adviser, with securities fraud for allegedly illegally using information about the clinical trial results that he obtained from a neurologist at a hospital involved in the testing.

The criminal complaint did not name the neurologist, which it said was a cooperating witness in the case.

The Securities and Exchange Commission filed a a related civil suit Tuesday against Martoma, CR Intrinsic and Dr. Sidney Gilman, a neurology professor at the University of Michigan Medical School. The SEC suit said Gilman was chairman of the safety monitoring committee overseeing the clinical trials of the Alzheimer's drug.

Martoma met Gilman some time between 2006 and 2008 through paid consultations, the SEC complaint says. "During these consultations, Gilman provided Martoma with material, nonpublic information about the ongoing trial," the SEC complaint said.

In mid-July 2008, "Gilman provided Martoma with the actual, detailed results of the clinical trial" before an official announcement on July 29, 2008, the SEC said.

The FBI, SEC and U.S. attorney's office in New York scheduled a 12:30 p.m. EST news conference to discuss the case.

"The charges unsealed today describe cheating coming and going – specifically, insider trading first on the long side, and then on the short side, on a scale that has no historical precedent," said Preet Bharara, U.S. attorney for Manhattan.  "As alleged, by cultivating and corrupting a doctor with access to secret drug data, Mathew Martoma and his hedge fund benefited from what might be the most lucrative inside tip of all time."

Follow Jim Puzzanghera on Twitter and Google+.

Also:

Senate moves insider trading bill to Obama's desk.

Baseball star Eddie Murray settles insider-trading investigation.

Former Goldman Sachs director Rajat Gupta guilty of insider trading.

http://articles.latimes.com/2012/aug/17/business/la-fi-sec-murray-20120818

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Key E-Mail-Privacy Senator Denies a Turn to the Dark Side

Patrick Leahy, the Vermont chairman of the Senate Judiciary Committee, and legislative aides denied a report Tuesday that the Democrat had reversed himself on legislation that would require authorities to obtain a probable-cause warrant to get access to all e-mail and other content stored in the cloud.

Leahy’s comments on Twitter and on his website came hours after CNET News.com reported that Leahy was pushing a new draft of the proposal that, instead of tightening the 1986 Electronic Communications Privacy Act, would actually expand the government’s authority to obtain e-mail without warrants.

He did not deny that the anti-privacy version of the bill was circulating on the Hill, but said it did not have his support, and that he would not be backing it at a planned November 29 public committee hearing.

“The rumors about warrant exceptions being added to ECPA are incorrect. Many have come forward with ideas for discussion before markup resumes on my bill to strengthen privacy protections under ECPA,” Leahy said on his site. “As normally happens in the legislative process, these ideas are being circulated for discussion. One of them, having to do with a warrant exception, is one that I have not supported and do not support.”

The draft uncovered by CNET would have given 22 federal agencies access to Americans’ e-mails with an administrative subpoena, which does not require judicial approval based on probable cause.

The ACLU, which has been involved in discussions over the legislation, backed Leahy’s version of events, and said he never supported the anti-privacy draft.

“This was a discussion point,” said Chris Calabrese, the legislative counsel for the American Civil Liberties Union. “He’s not interested in doing that.”

The amendment was virtually identical to a proposal by Sen. Chuck Grassley (R-Iowa), who floated the amendment during a September hearing before the Judiciary Committee, Calabrese said.

The current law covering access to e-mail gives the government the right to snoop without a court order on e-mail that’s older than 180 days, but requires a court order for missives that are newer than this, a fact that privacy activists and Leahy have been trying to change for years.

A legislative aide to Leahy, who declined to be quoted, said via a telephone call that there still might be “some tweaks” to Leahy’s proposal before the committee vote. Others familiar with the discussions suggested the tweaks might include granting the authorities warrantless access to university and corporate e-mail, but noted that no proposal has been finalized.

A Leahy aide said the senator was not immediately available for comment.

Jim Dempsey, the vice president for the lobbying group, Center for Democracy & Technology, said Leahy was floating a draft that supports CNET’s story. But it was only to weigh interest, Dempsey said, because so many Washington insiders, including the Justice Department and an army of lawmakers, oppose Leahy’s initial version.

“Leahy was trying to figure out some way to meet those concerns. He tried to put some words on paper to try to address those concerns,” Dempsey said. “But various people explained that his proposal was not going to be a step forward and would not be the privacy improvement the senator had hoped for.”

Leahy initially proposed the sweeping digital privacy protections in September after first failing to push them through last year. But he quietly had been circulating a revised draft following the elections, Dempsey said.

Leahy’s initial package, if approved as proposed, would nullify the provision of ECPA that allows the government to acquire a suspect’s e-mail or other stored content from an internet service provider without showing probable cause that a crime was committed, as long as the content has been stored on a third-party server for 180 days or more. Currently, to acquire such data, the government only needs to show, often via an administrative subpoena, that it has “reasonable grounds to believe” the information would be useful in an investigation.

When enacted two decades ago, ECPA provided much more privacy than it does today. The act was adopted at a time when e-mail wasn’t stored on servers for a long time, but instead was held there briefly on its way to a recipient’s inbox. E-mail more than 6 months old was assumed abandoned.

As technology advanced, more and more people began storing e-mail on cloud servers indefinitely. And Congress has so far been unwilling to change course, despite the Fourth Amendment implications as data storage in the cloud has grown.

No matter what package comes out of the Judiciary Committee, if anything at all, the full Senate would have to approve it, as well as the House and President Barack Obama.

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Camembert to clocks: Dali’s genius on show in Paris

PARIS (Reuters) – The broadest-ever retrospective of Salvador Dali, opening in Paris this week, seeks to move beyond the shameless self-promotion that the 20th century Surrealist was often derided for and stress his indelible influence on artists today.

Once dubbed “Avida Dollars” for his love of money, Dali is regarded by some as little more than a marketing product, his Spanish home an obligatory tourist stop, his trademark melting watches the inspiration for money-spinning souvenirs.

But a new show at the Pompidou Centre lays bare the extent of his creative genius, exploring how his experiments with painting, cinema, advertising and installations influenced movements from Pop Art to today’s performance art.

The show, which runs from November 21 to March 25, is set to be a blockbuster of the Parisian art calendar. The last Dali retrospective at the Pompidou in 1979 remains the most visited exhibition in the museum’s history.

“There’s this vision we have of there being a good Dali, the Surrealist, and then the one who came after, who made money,” said exhibition curator Jean-Michel Bouhours.

“We needed to go beyond this distinction between the good and the bad and show how the experimental Dali was extraordinarily important in the history of art and the artistic models that developed in the 60s and 70s.”

The exhibition features some 200 works by the Spanish master, including the famous 1931 “The Persistence of Memory” with melting pocket watches, which Dali said was inspired by watching camembert cheese liquefying in the sun.

Also on show are dozens of works on paper, projects for stage and screen, photographs and films such as the 1929 “Un Chien Andalou“, written with Spanish director Luis Bunuel.

His designs for ballet, decorative arts and even a pavilion for the 1939 New York World Fair earned him the derision of fellow Surrealists such as Andre Breton.

But Dali saw mass media as a more efficient way than painting of getting across his “paranoid critique” of the world.

His 1935 installation, “Mae West’s Face Which May be Used As An Apartment” with its lip-shaped sofa showed an obsession with celebrity that would later influence the Pop Art of Andy Warhol.

Born Salvador Domingo Felipe Jacinto Dali in 1904 in the Catalan town of Figueres, Spain, Dali remains a controversial artist, loved for his creative genius but dismissed by some as a madman and hated for his at times grotesque artistic vision.

Although an anarchist in his youth and deeply attached to his native Catalonia, he was criticized for later declaring himself a monarchist, turning to religion and moving closer to the post-war authoritarian regime of Francisco Franco.

His love of show business and manic declarations such as “Surrealism is me”, alienated many. But he is cited as an influence for many artists such as Damien Hirst and Jeff Koons.

Dali died of heart failure in Figueres in 1989, seven years after the death of his wife and muse Gala.

(Reporting By Vicky Buffery, editing by Paul Casciato)

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Global Update: Meningitis Vaccine Gets Longer Window Without Refrigeration

In what may prove to be a major advance for Africa’s “meningitis belt,” regulatory authorities have decided that a new meningitis vaccine could be stored without refrigeration for up to four days.

The announcement was made last week at a conference in Atlanta of the American Society of Tropical Medicine and Hygiene. While a few days may seem trivial, the hardest part of protecting poor countries is often keeping a vaccine cold while moving it from electrified cities to villages with no power. In antipolio drives, for example, the freezers, generators and fuel needed to make ice for the shoulder bags of vaccinators can cost more than the vaccine.

The new vaccine, MenAfriVac, made in India for 50 cents a dose, was introduced in 2010. In bad years, epidemics during the hot harmattan winds have killed as many as 25,000 Africans and disabled 50,000 more. In Chad this year, vaccination drove down cases to near zero in districts where it was used, while others nearby had serious outbreaks.

Experts decided that the vaccine is safe for four days as long as it stays below 104 degrees.

While temperatures get higher than that in Africa, said Dr. Godwin Enwere, medical director for the Meningitis Vaccine Project, teams normally get the vaccine out of coolers at dawn, drive to villages and finish before the day heats up. Other experts said it should be kept in the shade and monitored with colored paper “dots” that darken after hours in the heat.

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DealBook: Ex-Trader Charged in $276 Million Insider Scheme

Federal prosecutors brought what they called “the most lucrative insider trading scheme ever charged,” filing a criminal case on Tuesday against a former trader at a unit of the hedge fund SAC Capital.

Mathew Martoma, a former trader at CR Intrinsic, a division of SAC Capital, was charged with making about $276 million in combined profits and avoided losses by obtaining confidential information about a drug trial for an Alzheimer’s drug developed by the pharmaceutical companies Elan and Wyeth.

The case is the latest to put the billionaire investor Steven A. Cohen and his hedge fund, SAC Capital, in the spotlight over insider trading crimes committed by former employees.

Mr. Martoma received the information from Sidney Gilman, a neurology professor at the University of Michigan, a leading expert in Alzheimer’s disease. Mr. Gilman is cooperating with the government and has entered into a nonprosecution agreement with the United States attorney’s office in Manhattan.

Mr. Gilman connected with Mr. Martoma through an expert network firm based in New York. Expert networks became popular on Wall Street in the last decade, linking Wall Street money managers to specialists in various industries to help give them an edge on their investments. Expert networks have been a focus of the government’s widespread crackdown on insider trading at hedge funds.

His consulting work at the expert network firm earned Mr. Gilman more than $100,000, according to a parallel civil complaint against Mr. Martoma and Mr. Gilman filed by the Securities and Exchange Commission on Monday.

According to the complaint, between 2006 and 2008, Mr. Martoma consulted with Mr. Gilman on dozens of occasions about the preliminary results of the drug trial and accumulated a roughly $700 million position in the stocks of Wyeth and Elan. Mr. Gilman was chairman of the safety committee overseeing the drug trial.

In June 2008, the complaint says, Mr. Martoma received secret information about negative data relating to the drug trials. After receiving that information, Mr. Martoma caused SAC Capital to sell its entire inventory of roughly 10.5 million shares in Elan and about 7 million shares of Wyeth before the public release of the data.

The day after the study was announced, Elan stock lost about 42 percent of its value and Wyeth dropped about 12 percent. The inside information allowed SAC Capital to make about $276 million in illegal gains.

Mr. Martoma left SAC Capital in 2010, according to a spokesman at the hedge fund. A lawyer for Mr. Martoma could not be reached immediately for comment.

In a statement, Preet Bharara, the United States attorney, said: “The charges unsealed today describe cheating coming and going – specifically, insider trading first on the long side, and then on the short side, on a scale that has no historical precedent. As alleged, by cultivating and corrupting a doctor with access to secret drug data, Mathew Martoma and his hedge fund benefited from what might be the most lucrative inside tip of all time.”

Mr. Martoma is the latest person to have worked at SAC to be ensnared in an insider trading investigation. Jon Horvath, a former technology industry analyst at SAC, pleaded guilty in September to participating in a conspiracy that illegally traded in the shares of Dell computer. His boss, the former portfolio manager Michael Steinberg, has been named as an unindicted co-conspirator but has not been charged in the case. Mr. Steinberg’s lawyer, Barry Berke, declined to comment.

Last year, two former SAC portfolio managers – Donald Longueuil and Noah Freeman – admitted to trading on illegal tips about publicly traded technology companies. Mr. Longueuil is serving a two-and-a-half-year term at a federal prison in Otisville, N.Y.; Mr. Freeman, who is cooperating with prosecutors, has yet to be sentenced.

SAC CAPITAL UNDER A MICROSCOPE The firm has been under a cloud since a former employee, Richard Choo-Beng Lee, pleaded guilty in 2009 to insider trading and began helping the government in its investigation. The crimes he confessed to were committed after he left SAC, but he agreed to provide information about his five years at the firm, which ended in 2004.

NAMES	THE CASES
Jonathan Hollander	The former analyst paid more than $220,000 to settle civil charges brought by the Securities and Exchange Commission accusing him of trading in his personal account on confidential information about the 2006 takeover of the Albertsons grocery store chain.
Jon Horvath and Michael Steinberg	Mr. Horvath, right, a former technology industry analyst, pleaded guilty in September to participating in a conspiracy that illegally traded in the shares of Dell computer. His boss, the former portfolio manager Mr. Steinberg, has been named as an unindicted co-conspirator but has not been charged in the case. Federal prosecutors contend they were part of a seven-person conspiracy — a “circle of friends” — that earned about $62 million in illegal gains trading on secret tips from executives at publicly traded technology companies.
Donald Longueuil and Noah Freeman	The two former portfolio managers admitted in 2011 to trading on illegal tips about publicly traded technology companies. Mr. Longueuil, right, was swept up in a crackdown on so-called expert networks. He is one of roughly a dozen implicated in the case. Mr. Longueuil is serving a two-and-a-half-year jail term at a federal prison in Otisville, N.Y.; Mr. Freeman, who is cooperating with prosecutors, has yet to be sentenced.
Mathew Martoma	The former trader at CR Intrinsic, a unit of the hedge fund, was charged with making about $276 million in combined profits and avoided losses by obtaining confidential information about a drug trial for an Alzheimer’s drug developed by the pharmaceutical companies Elan and Wyeth.

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Judge denies bid for Nativity displays in Santa Monica

A person jogs by last year's Nativity scene in Palisades Park. (Gina Ferazzi / Los Angeles Times / November 19, 2012)

By Martha Groves

November 19, 2012, 1:40 p.m.

The city of Santa Monica can bar seasonal displays, including a Nativity scene that has appeared in Palisades Park for nearly 60 years, a federal judge ruled Monday.

In a closely watched case that has attracted national attention, Judge Audrey B. Collins denied a request from the Santa Monica Nativity Scenes Committee to erect multiple large displays depicting the story of the birth of Jesus in the park overlooking the ocean. The coalition of churches has erected the displays every December since the 1950s.

But last year, after requests for display spots exceeded the space allotted, the city held a lottery to allocate spaces. Atheists won 18 of 21 spots. A Jewish group won another. The traditional Nativity story that used to take up 14 displays was crammed into two.

Controversy erupted, and as a result, the city decided the lottery would become increasingly costly. Last June, the City Council voted to ban all private unattended displays.

In October, Nativity scene proponents filed suit in federal court to allow the traditional Christian displays to continue. In a 27-page tentative ruling, Collins denied the group permission to erect their displays this year while the case is pending.

"The atheists won," said William Becker, attorney for the Nativity group. He then went on to compare the city to Pontius Pilate, the judge at Jesus' trial, saying: "It's a shame about Christmas. Pontius Pilate was exactly the same kind of administrator."

Santa Monica's attorney, Barry A. Rosenbaum, said the city is "very pleased" with the ruling. The judge, he said, "understood the government interests and that [groups wanting to put up displays] have a number of alternatives to erect displays." 

All the parties are due back in court Dec. 3, when the judge will hear additional arguments in the case.

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Mark Cuban Calls Facebook a 'Time Waster'

Mark Cuban isn’t done criticizing Facebook. After saying last week the social network had “blown up” and alienated businesses by limiting their access to users’ news feeds, the Dallas Mavericks owner and tech entrepreneur is now calling Facebook a “time suck” that needs to learn its humble place in the media landscape.

Cuban posted the comments to his personal blog to clarify comments he made last week to ReadWrite on how Facebook aggressively filters posts from business pages to users’ news feeds. He wrote that Facebook is a “time waster” for people too anxious to “talk to the person next to you.” As such, Facebook should not bother filtering posts from business owners like Cuban:

FB doesn’t seem to want to accept that its best purpose in life is as a huge time suck platform that we use to keep up with friends, interests and stuff. I think that they are over-thinking what their network is all about .

Being a time suck that people enjoy is a good thing… [But] who really appreciates that some posts rise to the top of their newsfeed because some folks they used to work with and are still friends with shared a baby picture ? … In a perfect FB world every post enters the friends/like/subscriber’s timeline. If they log in and want to spend the time searching their timeline they see it, if not, not.

The Facebook news feed has been algorithmically favoring selected content, like the baby picture Cuban mentioned, since its launch in 2006. Facebook programmers are constantly tweaking the feed — to please users, they say — and in September began filtering page posts more aggressively after complaints about spam. This meant that business owners like Cuban tend to reach fewer users with each post and must buy “promoted post” advertising from Facebook if they want to reach even more.

Filling the role of “time suck” is actually a competitive job for properties like Facebook, which has made billions in profits replacing earlier time sucks like MySpace, Friendster, and AOL. Facebook itself faces competition from the likes of Twitter and Google, which is partly why it spends so much time trying to improve the relevance of its news feed.

It’s odd that Cuban, of all people, doesn’t appreciate the complexity involved in being a “time waster.” His NBA team the Mavericks spends inordinate time and money trying to be a compelling “time suck” for fans with nothing better to do than watch strangers play basketball for hours on end. The Mavericks hone elaborate on-court strategies, release and acquire highly skilled players, and strike complex broadcast and merchandizing arrangements. They don’t let just any random dribbler onto their home court to entertain the fans. Facebook works the same way.

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Charlie Chaplin’s bowler hat and cane fetch over $60,000 at auction

NEW YORK (Reuters) – One of Charlie Chaplin’s bowler hats and a cane, the staple of Hollywood silent-era comedy, were auctioned for $ 62,500 on Sunday, said auction house Bonhams.

Chaplin’s hat and cane, which fetched more than the initial estimate of $ 40,000-60,000, are synonymous with his “Little Tramp” character in films such as “City Lights” and “Modern Times.”

Bonhams memorabilia specialist Lucy Carr said earlier it is unknown how many of Chaplin’s bowlers and canes still exist. Those auctioned on Sunday are from a private collection but have a direct link to Chaplin, Carr said.

The waddling and bumbling “Little Tramp” character propelled Chaplin to global fame. The character, Hollywood legend says was created by accident on a rainy day at Keystone Studios, first appeared in 1914′s “Kid Auto Races at Venice” and lastly in 1936′s “Modern Times.”

Chaplin’s hat and cane are the highlights of an auction of popular culture artifacts that is still in progress. Other items include a handwritten letter from John Lennon in which the Beatle sketched himself and wife Yoko Ono nude. There is also an archive of Marilyn Monroe photographs, an early Charles Schulz “Peanuts” comic strip, and a wicker chair from Rick’s Cafe in “Casablanca.”

(Additional reporting by Eric Kelsey; editing by Christopher Wilson)

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Really?: The Claim: Eye Problems Can Cause Headaches in Children

Really?

Anahad O’Connor tackles health myths.

THE FACTS When a child complains of frequent headaches, many pediatricians order an eye exam. “In some pediatric ophthalmology practices, it’s a daily occurrence,” said Dr. Zachary Roth, a resident in ophthalmology at Albany Medical Center in New York.

Often, a child may experience headaches while reading or doing schoolwork, leading parents to think the child needs glasses. But are eye problems really a cause of childhood headaches?

In a recent study, Dr. Roth and his colleagues examined 158 children under age 18 who were referred to ophthalmologists for frequent headaches. Then, they evaluated the children’s medical records and looked at the results of earlier vision exams.

Ultimately, the researchers could not find any significant link between headaches and diagnoses of vision problems. In three-quarters of the subjects, the headaches went away over time, both in those who received new glasses and those who did not.

The study, which was presented at a recent American Academy of Ophthalmology conference, was not designed to look for causes of the headaches. But there were “quite a few” children with family histories of migraine, Dr. Roth said. Sinus problems and stress headaches also appeared to be common issues, he added.

“I think the take-away message is that it’s very unlikely for headaches to be caused by an eye problem,” he said. “The experience of all the ophthalmologists we talked to is that it almost never seems to be related to the eyes, so it’s probably more fruitful to investigate other causes.”

THE BOTTOM LINE Vision problems are often blamed for childhood headaches, but in reality, the two are rarely related.

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News Corporation Looks at Potential Acquisitions

Kevork Djansezian/Getty Images

Rupert Murdoch, second from left, with his sons, Lachlan, left, and James, second from right, and Chase Carey, News Corporation’s president and chief operating officer, in July in Sun Valley, Idaho.

The media conglomerate, which had been on its heels for more than a year because of the phone hacking scandal in Britain, is looking to make acquisitions again. First on the list could be a 49 percent stake in the Yes Network in New York, a purchase that could become the foundation for a new nationwide sports network to compete with ESPN.

News Corporation’s stock has reached highs as the company prepares to transfer its underperforming publishing assets, including newspapers like The Wall Street Journal and The New York Post, into a separate publicly traded entity.

One of the crucial factors in the decision was that the split would allow Rupert Murdoch, the company’s chairman and chief executive, to buy into the businesses he loves without upsetting investors who are more interested in cable and broadcast. Potential targets include The Los Angeles Times, The Chicago Tribune and more education companies.

“Rupert has his mojo back,” said Todd Juenger, a media analyst at Sanford C. Bernstein. “The stock is up, investors are happy with the company’s recent decisions.”

“He is definitely rubbing his hands together,” a person with knowledge of News Corporation’s deal-making discussions said of Mr. Murdoch.

In the last several weeks, Mr. Murdoch has exuded a satisfaction and sure-footedness that people close to the company said they had not seen since before Mr. Murdoch’s British newspaper unit became embroiled in a phone hacking scandal. That is in part because hacking has been overtaken in the press by an unfolding scandal at the British Broadcasting Corporation.

The BBC, which Mr. Murdoch and his son James have frequently criticized, is accused of canceling a news program’s segment about serial child molesting committed by longtime host Jimmy Savile, and broadcasting false reports of pedophilia about a member of Margaret Thatcher’s administration.

People close to Mr. Murdoch said he considered the BBC scandal karmic justice for months of negative coverage of News Corporation, and he has provided almost daily commentary via Twitter. “BBC getting into deeper mess,” he wrote on Nov. 10. “After Savile scandal, now prominent news program falsely names senior pol as pedophile.”

And the BBC scandal touches another Murdoch rival — The New York Times, whose parent company’s new chief executive, Mark Thompson, served as director general at the BBC. Mr. Thompson’s replacement at the BBC, George Entwistle, resigned on Nov. 11 after just 54 days on the job. “Look to new CEO to shape up NYT unless recalled to BBC to explain latest scandal,” Mr. Murdoch wrote on Twitter last month.

As News Corporation sank into its hacking scandal last year, it delayed new acquisitions. In September, Britain’s Office of Communications, known as Ofcom, said that British Sky Broadcasting, 39.1 percent owned by News Corporation, was “fit and proper” to hold a broadcast license. The decision removed a cloud of uncertainty at News Corporation’s Manhattan headquarters and cleared the company to revisit deals, analysts said.

“The internal narrative at the company is that the boss is in shopping mode,” said one person close to News Corporation who could not discuss Mr. Murdoch’s thinking publicly.

Dropping its $12 billion bid for the portion of BSkyB that it did not already own gave News Corporation ample cash to complete share buybacks and consider other acquisitions. The company had $9.6 billion in cash at the end of its 2012 fiscal year and in September borrowed another $1 billion.

On a recent earnings call, Chase Carey, News Corporation’s president and chief operating officer, said: “We always seem to be the topic of the day when it comes to a rumor of some transaction.” Still, he added: “There are places where we think we should kick the tires on things.”

Last week News Corporation neared a deal with Yankees Global Enterprises to buy a 49 percent stake in the Yes Network, a regional New York sports network, with a valuation of about $3 billion. A stake in Yes would add to News Corporation’s lineup of regional sports channels and contribute to its reported plans to introduce a national cable sports channel that could take on the Walt Disney Company’s ESPN.

“It’s one of the only businesses where there’s no No. 2,” said Michael Nathanson, a media analyst at Nomura Securities. “In our view, sports is the safest asset in media.”

This month the company paid an estimated $250 million for the portion of ESPN Star Sports that it did not already own. ESPN Star Sports, based in Singapore, operates 17 sports networks in five languages around Asia.

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