24th May, 2013
News Corp said Friday its board approved the breakup of the media-entertainment conglomerate headed by Rupert Murdoch into two separate companies, to be effective June 28.
Murdoch will head both firms, including one company focused on news and publishing, to retain the News Corp name, and another on television and film, to be called 21st Century Fox.
“Today’s announcement is a significant step in creating two independent companies with the world’s leading portfolios of publishing and media and entertainment assets,” said Murdoch, who will be chairman and chief executive of 21st Century Fox, and executive chairman of the new News Corporation.
“We continue to believe that the separation will unlock the true value of both companies and their distinct assets, enabling investors to benefit from the separate strategic opportunities resulting from more focused management of each division.”
News Corporation will include the group’s slower-growth assets — newspapers in Britain, Australia and the United States, including The Wall Street Journal. It also includes digital real estate services, book publishing, digital education and sports programming and pay-TV distribution in Australia.
The 21st Century Fox unit includes the Fox studios in Hollywood and a global array of cable and broadcasting networks and properties, including Fox broadcasting and cable operations, National Geographic Channels, Fox Pan American Sports, MundoFox, STAR, and 28 local television station. It has pay-TV services in Europe and Asia, including Sky Deutschland, Sky Italia and its equity interests in BSkyB and Tata Sky.