Murdoch Confirms News Corp Will Be Split; Offers No Details

Rupert Murdoch confirmed today (Thursday) that the News Corp board has approved his plan to split the company into two separate businesses -- one devoted to newspapers and other publishing, the other devoted to entertainment. His 150-word statement concluded, "We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe. I am 100 percent committed to the future of both the publishing and media and entertainment businesses and, if the board ultimately approves a separation, I would serve as chairman of both companies." Reports also indicated that he would also remain CEO of the new entertainment business. There was no indication regarding who would be assigned that position at the newspaper business, nor was there any mention of what the two businesses would be named. The split recalled Sumner Redstone's controversial break-up of Viacom in 2005 into one company embracing its movie and cable units (Viacom) and another, its billboard and broadcasting units (CBS Corp.). Murdoch's move would seem to quarantine his scandal-plagued newspaper business, which has struggled to remain profitable as it faces the challenge of a digital world. His London newspapers continue to face lawsuits -- some say they could number in the hundreds -- for hacking into the voicemail of celebrities and politicians. But in a message to his staff, Murdoch said, "Our publishing businesses are greatly undervalued by the skeptics. Through this transformation we will unleash their real potential, and be able to better articulate the true value they hold for shareholders." But some analysts see the move inevitably leading to a collapse of Murdoch's news business. Wrote Financial Times columnist John Gapper "Investors put up with the losses at papers such as the New York Post while growing divisions such as Fox News compensated for them. They will be less sanguine when the financial duds are part of a smaller, weaker company with revenues falling in double digits."

28/06/2012


Contactmusic

Tags: Rupert Murdoch - Billboard - Commitments - Fox News

Advertisement

More Rupert Murdoch

"Old Fashioned?" Rupert Murdoch Hints at U-Turn on Page 3 Girls

Page 3 girls could be replaced by 'beautiful young woman in fashionable clothes' after Rupert Murdoch called his own creation "old-fashioned". The founder of The...

George Clooney Going after News Corp with Phone Hacking Movie

Oscar-winner George Clooney is ready to put the disappointment of The Monuments Men behind him and dive straight back into directing, helming a film about...

Malorie Blackman Fights Back After Inaccurate Headline Incites Racist Abuse

The children's laureate Malorie Blackman says she will not let "haters" silence her after an inaccurate headline on Sky News led to the author receiving...

Sky Buy Up The Production Company Behind Benefits Street And The Great British Bake Off

BSkyB has made a significant purchase, prising independent company Love Productions from the grasp of terrestrial TV channels.The deal sees BSkyB own a 70% stake...

Advertisement

Jennifer Lawrence Stuns In Blue Velvet At The World Premiere of 'X-Men: Days Of Future Past' - Part 4

Jennifer Lawrence looked breath-taking in blue velvet at the world premiere of 'X-Men: Days Of Future Past' held at the Jacob Javits Center in New...

The Most Expensive Celebrity Divorces Of All Time

It’s been great to see Elin Nordegren has finally been moving on since her 2010 split with golf pro Tiger Woods. Nordegren has recently been...

Wendi Deng Murdoch Besotted With Tony Blair?

Wendi Deng Murdoch, the former wife of media mogul Rupert Murdoch, was seemingly infatuated with former British Prime Minister Tony Blair. In a love letter...

Rupert Murdoch And Third Wife Reach Divorce Settlement

Rupert Murdoch and his third wife Wendi Deng have finally come to a settlement on their divorce.The pair officially ended their 14 year marriage in...

Advertisement

Comments

Rupert Murdoch Newsletter

Subscribe to this news alert service to receive news and reviews on Rupert Murdoch

Unsubscribe | Unsubscribe All