News Corp split could be confirmed by Thursday
Murdoch’s News Corp has confirmed that the company is considering splitting into two separate sections, with one publishing sector and one profitable film and television sector.
The information, leaked to Murdoch’s Wall Street Journal on Tuesday, confirms that the company could be split in a bid to improve stock value.
Murdoch is meeting with senior executives of News Corp on Wednesday and a decision could be confirmed as early as Thursday on whether or not the company will be split.
The decision comes as a result of the phone hacking scandal where the News of the World was closed down, as shareholders have continued to put pressure on News Corp.
It is News Corp’s most drastic change since the establishment of the media conglomeration by Rupert Murdoch in 1979, however it is not believed to affect the Murdoch family’s control over the company.
The publishing sector will include The Sun, The Times and The Sunday Times, in addition to the Wall Street Journal, the New York Post, The Australian and its book publisher HarperCollins.
Murdoch has previously disregarded the idea of separating its entertainment sector from its publishing sector, although it has been a suggestion welcomed by many of its investors for years.
News Corp’s investors have dissimilar interests when it comes to entertainment and publishing, and the split is therefore being considered to improve the company’s stock value.
After the information leaked, the company’s stock has already seen an improvement to 8.3% on Tuesday, the highest it has been since 2007.
Line Elise Svanevik