News Corp is to separate its publishing and media and entertainment businesses into two publicly traded companies, with the proposal receiving support at a board meeting this week.
News Corp’s media business is doing well, with its UK satellite broadcaster BSkyB expecting outstanding 2012 results.
However, its publishing arm has been in turmoil, following the phone hacking scandal that is still hovering over Rupert Murdoch and his conglomerate, and already cost its life to the 168-old News of the World last July.
Chairman and CEO Rupert Murdoch said in a statement: “We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe. I am 100% committed to the future of both the publishing and media and entertainment businesses and, if the board ultimately approves a separation, I would serve as chairman of both companies.”
Following the upcoming split, News Corp clarifies that shareholders will hold interests in “a publishing company, which would be comprised of News Corporation’s newspapers and information businesses in the U.S., U.K., and Australia, the Company’s leading book publishing brands, its integrated marketing services company, its digital education group, as well as its other assets in Australia; and a global media and entertainment company, which would encompass News Corporation’s broadcast and worldwide cable networks, leading film and television production studios, television stations and highly successful pay-TV businesses in Europe and India.”