Media conglomerate News Corp is weighing up whether or not to split itself into two companies by dividing its publishing and entertainment businesses, The Wall Street Journal (WSJ) has reported.
According to people familiar with the situation, the WSJ, which itself is part of News Corp, says that the entertainment company (which includes Fox broadcast network and Fox News) would be significantly larger than the publishing company, which includes all of its newspapers and its education businesses.
No decision is said to have been made, although Chairman Rupert Murdoch is believed to have recently lent his support to the plan, having previously opposed it.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Such a move is said to be popular amongst outside investors, who are more interested in the entertainment side of News Corp, given its fast-growing nature.
The entertainment business contributed to around 90% of the company's operating profit in the first nine months of the last fiscal year, and brought in three-quarters of the revenue.
Speaking in May, Chase Carey, the Chief Operating Officer of the group, said in an investor call that while he was aware such a split was favoured by some shareholders and the idea had been discussed, there were currently no plans to pursue it.
If the business were split, Murdoch would retain his family's stake in the business, which currently stands at around 40%.
NR
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
