News Corporation considers business split

 

Rupert Murdoch's News Corporation today confirmed it was considering plans to split the business in two.

A report earlier today in News Corp-owned The Wall Street Journal said the group was looking to separate its entertainment businesses from publishing assets, including The Sun and The Times.

The move would see the group's 39% stake in broadcasting giant BSkyB separately listed from the embattled UK newspaper arm News International, which has been the focus of the phone hacking scandal that led to the closure of News Corp's News of the World tabloid paper.

In a short statement, News Corp said it was "considering a restructuring to separate its business into two distinct publicly traded companies".

Shares in News Corp jumped as much as 8% on Wall Street as investors cheered confirmation of the plans, which come after years of calls for the group to separate its publishing arm from the faster growing entertainment businesses.

In London, BSkyB shares raced 3% higher amid market speculation that the split will raise the possibility of News Corp reviving its plans to take full control of BSkyB.

It had to scrap a deal to buy the remaining stake of BSkyB in the wake of the phone hacking scandal, but a restructuring has the potential to effectively quarantine the scandal-hit papers from the rest of the group and pave the way for the deal to be resurrected.

News Corp's move would see film and television businesses - including 20th Century Fox and the Fox broadcasting network - grouped in one company.

The other company would hold all News Corp's publishing interests, such as The Wall Street Journal, The Times, The Sun, The Australian, The New York Post and publisher HarperCollins.

The entertainment arm would be by far the bigger operation, with the publishing division hindered in recent years by tough media market conditions and costs related to the UK phone hacking scandal.

News Corp was rocked by the hacking debacle, with Rupert Murdoch and his son James Murdoch coming under heavy fire.

A report by a committee of MPs claimed Rupert Murdoch was "not a fit person" to run an international company following an inquiry by the Commons Culture Committee investigating the News of the World scandal.

News Corp has been trying to contain the scandal from infecting the rest of the group.

James Murdoch resigned as chairman of BSkyB in April admitting he had become its "lighting rod", just weeks after he quit as boss of News International.

PA

Start your day with The Independent, sign up for daily news emails
Voices
Barn owls are among species that could be affected
charity appeal
News
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
Sport
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Ashdown Group: (PHP / Python) - Global Media firm

£50000 per annum + 26 days holiday,pension: Ashdown Group: A highly successful...

Ashdown Group: Analyst Programmer (Filemaker Pro/ SQL) - Global Media firm

£50000 per annum + 26 days, pension, private medical : Ashdown Group: A highly...

Ashdown Group: IT Support Analyst - Chessington

£25000 per annum: Ashdown Group: IT Service Desk Analyst - Chessington, Surrey...

Charter Selection: Graphic Designer, Guildford

£35000 - £40000 per annum: Charter Selection: This renowned and well establish...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas