Rupert Murdoch’s News Corporation has backed a plan to split its publishing and media and entertainment businesses into two distinct publicly traded companies.
Murdoch, who controls close to 40% of News Corp, will serve as chairman of both companies. Chase Carey takes on the role of president and COO.
Murdoch said the new corporate structure will allow News to realise its full potential “and unlock even greater long-term shareholder value”.
“There is much work to be done, but our board and I believe that this new corporate structure we are pursuing would accelerate News Corporation’s businesses to grow to new heights,” he said via a statement.
News Corporation’s highly-profitable cable and television assets, including Twentieth Century Fox Television, Fox Sports, Fox International Channels and Fox News Channel will operate independent of the newspaper and information business.
In comparison, profits from the newspaper business declined 4% in the past year, but the company said the new structure will allow for greater flexibility.
News’ publishing business includes The Wall Street Journal, HarperCollins, The New York Post and a diverse set of assets in Australia
News Corp assets were estimated at US$61 billion in March 2012.