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.
