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.