Wall Street Journal reported that Rupert Murdoch’s News Corp, the world’s second-largest media group as of 2011, is thinking about splitting into two companies. The paper stated that no final decision regarding the split was made, and that the Murdoch family will not be losing its control on any of the businesses involved.
The purpose behind the split is to separate News Corp’s entertainment businesses (including film and television businesses) from its publishing assets (including book publishing assets, newspapers, and education business). The company’s film and television holdings include Fox broadcast network, Fox News channel, and 20th Century Fox film studio. Its publishing businesses include HarperCollins, The Wall Street Journal, the Sun, and the Times of London.
According to an inside source cited by the Journal, Murdoch initially opposed the move, but eventually started warming to the idea.
Murdoch and News Corps were recently involved in a phone hacking scandal at its UK newspapers. This scandal also affected its New York-based media company. The scandal led to the arrest of many News Corp staff members in Britain, and disrupted the supposedly smooth transition for Murdoch’s son, James, to succeed him as the corporation’s CEO.
News Corp spokesperson Julie Henderson declined to comment.