News Corp confirms split

The Murdoch-owned company says the split will create an “unparalleled portfolio of assets, brands and franchises” that will benefit from enhanced strategic alignment and increased operational flexibility.

news corp

News Corp’s board authorised its management to go ahead with the separation following a board meeting yesterday (27 June).

The move means businesses such as News International, the Wall Street Journal and book publisher HarperCollins will soon be operated separately from News Corp’s Fox television network and movie studio arm as well as its 39% stake in BSkyB.

News Corp says the split will help focus on the distinct strategic and industry-specific opportunities of each business to maximise their long-term potential.

The entertainment arm is set to “build on its deep heritage” in developing premium content for distribution “on screens of all sizes”, News Corp says.

It will also benefit from the rapidly-growing and high margin cable network and pay-TV assets and distribution from its global businesses across North and South America, Europe and Asia.

News Corp says the new global publishing company “would have the opportunity to leverage its trusted brands for innovation and value creation across all traditional and digital platforms”.

Rupert Murdoch is set to serve as chairman of both companies and CEO of the entertainment company. Chase Carey will become president and COO of the entertainment company. More leadership roles are set to be announced in the coming months.

The separation is expected to complete in a year, subject to board and shareholder approval. It will also be subject to regulatory approval from bodies such as the US Securities and Exchange Commission.

Recommended

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now