News Corp Officially Announces Plan For Business Split

The company says that creating separate entities for its publishing and entertainment assets will enable executives to better focus on “distinct strategic priorities,” respond more quickly to opportunities, and tailor capital structures for their needs. Rupert Murdoch will be chairman of both companies and Chase Carey will be president and COO of the media and entertainment one. No word on who will run publishing, or who will be on each company’s board. “I am 100% committed to the future of both the publishing and media and entertainment businesses,” Murdoch says. It will take about a year for the separation to take place. Investors would receive one share in the new company for each News Corp share they own. The companies each will have two classes of stock, protecting Murdoch’s voting control. News Corp will convene a special shareholder meeting early next year. It also needs rulings from tax officials to be sure the plan can be done tax-free. More to come soon after the company holds a conference call with analysts. Here’s the News Corp release: (more…)

This article was printed from https://deadline.com/2012/06/news-corp-officially-announces-business-split-293566/