News Corp looks at split into two

RUPERT Murdoch’s News Corp yesterday said it was considering splitting into two publicly traded companies.

Shareholders have been pushing for a spin-off of the slower-growth publishing division after a phone hacking scandal hit the company’s British newspapers.

The scandal sent shockwaves through the group and forced News Corp to drop its biggest-ever acquisition of the pay-TV group BSkyB. According to one source familiar with the matter, a move to split the lucrative entertainment business from the publishing business is being championed by News Corp chief operating officer Chase Carey, who sees it as a way to boost shareholder val- ue.

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The matter has been under discussion for a “considerable period of time” and no final decision has been made, a second source said. No plan has yet been proposed to the board, the source contin- ued.

News Corp is controlled by chairman and chief executive Rupert Murdoch and his fam- ily.

The Wall Street Journal, which is owned by News Corp, reported that the Murdoch family was not expected to lose its effective control of any of the businesses involved, if a split goes through.

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