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Planned News Corp spin-off lost $2B in fiscal 2012

Published on NewsOK Modified: December 21, 2012 at 2:22 pm •  Published: December 21, 2012

Shareholder approval is not needed for the split, but is required for the way it happens. The company plans to issue shares in the new News Corp. to existing shareholders in proportion to their current holdings of nonvoting Class A shares and voting Class B shares. If shareholders don't approve the split plan, the company may have to come up with a different way to enact it. A special shareholder meeting will be held sometime next year.

According to the filing, the smaller entity will be made up of Dow Jones, the publisher of The Wall Street Journal; newspapers such as The Herald Sun in Australia and The Times in Britain; digital real estate services; book publisher HarperCollins; pay TV channel Fox Sports Australia and a 50 percent stake in Australian pay TV provider Foxtel; and Amplify, its fledgling for-profit education business.

The remaining Fox Group will house pay TV channels that include Fox News Channel and FX; 20th Century Fox movie studio; Fox broadcast TV stations and network; satellite TV provider Sky Italia; and its 39 percent stake in British Sky Broadcasting.

Shares of News Corp fell 57 cents, or 2.2 percent, to $24.86 in afternoon trading amid a broad market decline.