News Column

Murdoch Considering Splitting News Corp Into Two

June 26, 2012
Murdoch

News Corp chairman Rupert Murdoch is considering dividing the media company into two, separating its publishing properties from its entertainment business, the Wall Street Journal reported on Tuesday.

The split would mean that News Corp's newspaper, magazine and book publishing businesses would be separated from its film and television properties, including its numerous television broadcasters and the 20th Century Fox movie studio.

A final decision has not yet been made, according to the paper.

Investors may welcome the split because News Corp's entertainment divisions has consistently outperformed its publishing assets in recent years, and make up the bulk of the media behemoth's profits.

One of the company's British titles, News of the World, was shuttered last year after allegations erupted that its journalists hacked into the phones of royals, celebrities and ordinary citizens alike.

The resulting scandal rattled the nerves of News Corp's investors and damaged the reputation of several of its British newspapers.

The Wall Street Journal, itself a News Corp publication, reported that should the company split, the Murdoch family would likely continue to have a controlling stake in both business.



Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH