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News Corp considers splitting into two separate units

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Press Trust of India New York
Last Updated : Jan 24 2013 | 1:49 AM IST

The Rupert Murdoch-led conglomerate did not provide specific details about the proposed restructuring.

In a brief statement, News Corp confirmed that it was "considering a restructuring to separate its business into two distinct publicly traded companies".

The Wall Street Journal, owned by News Corp, earlier reported that the group was looking to split itself into two separate businesses.

News Corp, with interests in news, entertainment and sports segments, owns some well known brands such as Star channels, The Wall Street Journal, HarperCollins, The New York Post and the Times of London.

Its shares surged 6.3 per cent to USD 21.36 at Nasdaq.

The Wall Street Journal today reported that News Corp was planning to separate its publishing assets from the entertainment businesses.

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The split would carve off News Corp's film and television businesses, including 20th Century Fox film studio, Fox broadcast network and Fox News channel from its newspapers, book publishing assets and education businesses, it noted.

As per report, News Corp Chairman Rupert Murdoch, who had previously opposed such a move recently warmed up to the idea.

The entertainment assets make up by far the bulk of the company, contributing three-quarters of the USD 25.34 billion in revenue for the first nine months of the fiscal year and accounted for roughly 90 per cent of the operating profit in that period, the report said.

Meanwhile, in April this year, Star Group said it was exiting from news business in India and woudld brand association with the ABP Group in their joint venture that runs three news channels, including Star News in Hindi.

  

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First Published: Jun 26 2012 | 9:06 PM IST

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