Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Murdoch splits empire into two firms

Rupert Murdoch has split his NewsCorp company into two parts to seperate the entertainment and publishing divisions.

Rupert Murdoch split his corporate empire into two parts on Friday under a long-promised plan to "unlock value" by separating high-flying entertainment operations from struggling publishing activities.

The split became effective at the close of trade in New York, creating a new group called 21st Century Fox while retaining the name News Corp for the publishing group. Murdoch remains in charge of both.

The 21st Century Fox group, which includes the Fox Hollywood studios and television entities, "launches as a unique force bringing news and entertainment to more than a billion customers every day in over 100 languages," said Murdoch.

"Our success will continue to be rooted in a deep belief in originality and a commitment to empowering creative minds and entrepreneurs around the world.

"Our management teams are the best in the business and we will drive growth and shareholder value by expanding our existing assets and brands, while embracing new opportunities and technology."

The new News Corp, with Murdoch in the role of chairman, includes well-known newspapers like the Wall Street Journal and New York Post in the United States; The Sunday Times of London, Sunday Telegraph and The Sun in Britain; and The Australian.

It also includes Dow Jones news agency, Fox Sports Australia and the HarperCollins publishing house.

"We are continuing a proud tradition and fashioning a prosperous future in the new News Corp," chief executive Robert Thomson said.

"We have a valuable collection of complementary companies and our task is to make the new News more than the sum of these distinguished parts."

New News Corp shares will trade under the ticker symbols NWSA and NWS, starting on Monday. Shares in 21st Century Fox will trade under the symbols FOXA and FOX.

The split of the company, with some $34 billion in revenues worldwide, is seen partly as a nod to shareholders angered by the damage and costs inflicted by a phone hacking scandal in Britain, and partly because of troubles within the group's publishing arm.

While some analysts see the outlook for publishing as bleak, Murdoch says he remains committed to his newspaper roots.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Dow Jones, News Corp, Thomson, Wall Street
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Rupert Murdoch, news corp, company restructuring
Latest Blog Posts
Whitepapers
  • ERP Selection: Finding the Right Fit
    Finding a needle in a hay stack is hard, but the task pales in comparison to finding a specific needle in a pile of needles. Selecting the ideal Enterprise Resource Planning (ERP) solution can feel just as daunting. ERP represents a serious investment for any organisation and is vital to future success. This report explores the strategies organisations are employing to find the right ERP fit that will give them the tools they need to thrive.
    Learn more »
  • Why you should be re-thinking your approach to data protection
    Organisations of all shapes and sizes need a new approach to data protection that addresses the challenges of data growth, but IT budgets are not keeping pace with the escalating costs of supporting storage requirements. This whitepaper explores how securing and retrieving organisational data will need to be done more efficiently.
    Learn more »
  • Pathways Advanced ICT Leadership Development Program Course Outline and Big 6 2013
    Developed by the CIO executive Council in conjunction with Rob Livingstone Advisory, Pathways Advanced is a 12-month CIO delivered, small group, mentor based professional leadership development program. Pathways Advanced brings together best practice, thought leadership and business insights for today’s most promising ICT professionals
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index


Computerworld
ARN
Techworld
CMO