News Corp. to Split in Two?

Share:
In this file photo taken Feb. 1, 2010, News Corp.'s headquarters is shown, in New York. News Corp. releases quarterly financial earnings Wednesday, Aug. 4, 2010, after the market close.

In this file photo taken Feb. 1, 2010, News Corp.'s headquarters is shown, in New York. News Corp. releases quarterly financial earnings Wednesday, Aug. 4, 2010, after the market close. (AP Photo/Mark Lennihan)

June 26, 2012

Murdoch would likely retain control of both arms of the business, and each would be traded separately.

The new structure would be a dramatic shift for the company, and for Murdoch, who started News Corp. by purchasing Australian newspapers in the ’60s. The mogul has long held his beloved newspapers close, even amidst the recent News of the World phone-hacking scandal.

But the possible split likely has less to do with the scandal and more to do with increasing shareholder value, according to a person close to the company who briefed The New York Times’ Dealbook blog:

Restive shareholders have often said they would prefer that the company focus on its more lucrative entertainment assets, which together generated $23.5 billion in revenue in the year ended in June 2011. The publishing business, by contrast, contributed $8.8 billion in revenue.

This echoes what three former News Corp. executives told The New York Times last February: that News Corp. today has become “a sports and entertainment company with a newspaper problem.”

Update [June 28, 2012]: News Corp. today announced it “intends to pursue the separation of its publishing and media and entertainment businesses into two distinct publicly traded companies.” In an internal memo obtained by The New York Times’ DealBook blog, Rupert Murdoch tells employees that “size and breadth has created an opportunity to separate News Corporation into two global leaders in their own right — we will wow the world as two, as opposed to merely one.”


More Stories

‘It’s All We Could Do: Cry’: A Honduran Mother and Daughter Describe Their Separation Under U.S. 'Zero Tolerance' Immigration Policy
A Honduran mother and her young daughter, separated under Trump administration immigration policies, share their stories in a new FRONTLINE documentary, ‘After Zero Tolerance.’
December 6, 2022
Kherson After Liberation: Co-producer of ‘Putin’s Attack on Ukraine’ Documentary Describes Visit
A Ukrainian filmmaker and journalist who was on one of the first trains traveling to the newly liberated city talks to FRONTLINE about the damage he saw in Kherson after eight months of Russian occupation.
November 29, 2022
As Donald Trump Announces His 2024 Run, a Look Back at His Presidency and Impact
FRONTLINE has built a unique public record, in documentary format, of the former president’s impact on American life, politics and democracy — and his previous battles with a special counsel and the Department of Justice.
November 16, 2022
How American Politics Reached This Fraught Moment: 12 Documentaries to Watch Ahead of the Midterms
As a divided America prepares to vote and fears of political violence continue, these FRONTLINE documentaries show how U.S. politics reached this moment.
November 4, 2022