News Corporation has announced its intent to separate its publishing and media and entertainment businesses into two distinct publicly traded companies.
On completion of transactions to that effect, there would be a publishing company with publishing assets and a new digital education group, and a global media and entertainment company.
The company says each of these would benefit from enhanced strategic alignment and increased operational flexibility.
News Corporation’s Board authorised management to explore this separation after a Board meeting on 27 June 2012.
Rupert Murdoch, chairman and chief executive officer, News Corporation, said, “We recognise that over the years, News Corporation’s broad collection of assets have become increasingly complex. We determined that creating this new structure would simplify operations and greater align strategic priorities, enabling each company to better deliver on our commitments to consumers across the globe. I am 100 percent committed to the future of both the publishing and media and entertainment businesses and, if the Board ultimately approves a separation, I would serve as chairman of both companies.”
The new global media and entertainment company would consist of News Corporation’s cable and television assets, filmed entertainment, and direct satellite broadcasting businesses. These include Fox Broadcasting, Twentieth Century Fox Film, Twentieth Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland.
The new global publishing company would consist of current publishing businesses, as well as its book publishing, education and integrated marketing services divisions.
It would incorporate brands including Dow Jones, The Wall Street Journal, Dow Jones Newswires, HarperCollins, The New York Post, The Daily, The Australian, The Herald Sun, The Daily Telegraph, The Courier Mail, The Times, The Sun, The Sunday Times, and News Corporation’s integrated marketing services group and its digital education group, including Wireless Generation.
Upon closing of the proposed transaction, Rupert Murdoch will serve as chairman of both companies and chief executive officer of the media and entertainment company. Chase Carey will serve as president and chief operating officer of the media and entertainment company. Over the next several months, the company will assemble management teams and Boards of Directors for both businesses.
The separation is expected to be completed in approximately 12 months, and is subject to shareholder and regulatory approvals.