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.”


In order to foster a civil and literate discussion that respects all participants, FRONTLINE has the following guidelines for commentary. By submitting comments here, you are consenting to these rules:

Readers' comments that include profanity, obscenity, personal attacks, harassment, or are defamatory, sexist, racist, violate a third party's right to privacy, or are otherwise inappropriate, will be removed. Entries that are unsigned or are "signed" by someone other than the actual author will be removed. We reserve the right to not post comments that are more than 400 words. We will take steps to block users who repeatedly violate our commenting rules, terms of use, or privacy policies. You are fully responsible for your comments.

blog comments powered by Disqus

More Stories

County will provide testing for neighbors of Florida’s lead smelter
The move was prompted by a Tampa Bay Times investigation that found hundreds of workers at the smelter were exposed to high amounts of toxic chemicals.
April 22, 2021
A Timeline of Domestic Extremism in the U.S., from Charlottesville to January 6
According to data from the Center for Strategic and International Studies, there were 405 terror attacks or plots in the U.S. from 2015 through 2020 — more than double the total number in the previous decade. A timeline of significant incidents tracks how domestic extremism has evolved in recent years.
April 21, 2021
Derek Chauvin is convicted of killing George Floyd in Minneapolis, cuffed and sent to prison
The conviction, almost a year after a bystander video captured Chauvin kneeling on Floyd's neck for more than nine minutes, was the first time in Minnesota history that a white police officer was convicted of killing a Black civilian on the job.
April 20, 2021
Chauvin Trial Lawyers Bring Everything Together in Closing Arguments on Floyd's Death
After 45 witnesses and 14 days of testimony in the Hennepin County District Court trial, two lawyers will make their closing arguments, the final words the jurors hear from them before retreating behind closed doors to deliberate.
April 17, 2021