News Corp might split into two companies
One of the largest media companies in the world is considering splitting in half, according to the Wall Street Journal. News Corp may soon separate its publishing assets from its entertainment businesses, say people familiar with the situation.
WSJ adds 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. “If a separation occurs, the publishing company would be far smaller than the entertainment company,” the report adds.
Politico points out “the fallout from a News Corp. split, at least from the spectators’ perspective, is simple: boon for the already strong film and TV, potential doom for the struggling newspapers.”
A final decision on the split has yet to be made.
WSJ cites an interest stat: A split of News Corp.’s businesses would be welcomed by outside investors who are more interested in News Corp.’s television and film assets than its slow-growing publishing businesses. “The entertainment assets make up by far the bulk of the company, contributing three-quarters of the $25.34 billion in revenue for the first nine months of the fiscal year. Those assets accounted for roughly 90% of the operating profit in that period.”
This news come as the company struggles with an investigation into phone hacking by its U.K. newspapers. The phone hacking scandal has shaken Britain’s media, police and political establishments.