News Corp splits in two
June 28, 2012
Rupert Murdoch's News Corporation announced on Thursday that it intended to split its entertainment division and its struggling publishing business into two separate firms.
The global conglomerate said Murdoch would be chairman of both companies, including an entertainment unit with 20th century Fox studios and a publishing unit comprising the Wall Street Journal and Times of London.
"There's much work to be done, but our board and I believe that this new corporate structure will accelerate News Corporation's businesses to grow to new heights and unlock even greater long-term shareholder value," Rupert Murdoch said in a statement.
Forward-looking philosophy
Murdoch added the separation would simplify operations and help realign strategic priorities.
The move came with News Corp being under enormous pressure from a phone-hacking scandal that had rocked Britain and resulted in the closure of the company's flagship News of the World tabloid. Several senior executives had been forced to resign as the true scope of the scandal became known.
The media units have also been hit by a slump in newspaper circulation and advertizing as large numbers of formerly devoted readers have meanwhile turned to free online news sources.
hg/sej ( AFP, dpa)