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Plan Approved to Split News Corp.’s Newspaper and Entertainment Operations

Jun 28, 2012  •  Post A Comment

News Corp.’s board has approved in principle a plan to separate its publishing assets from its entertainment division, reports Bloomberg.

Chairman Rupert Murdoch, 81, is acceding to shareholder demands after the company’s newspaper operations have been hurt by a hacking scandal, the piece notes. The newspaper operation is now seen as a drag on the company’s bigger entertainment assets.

Details of the split aren’t yet resolved, the piece adds.

While News Corp. has a market value of $54.1 billion, the company may be worth $70 billion to $77 billion if its businesses are valued separately, the story notes.

About 70% of its annual profit is derived from television.

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