Copyright ©2010. The Associated Press. Copyright ©2010. The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. This material may not be published, broadcast, rewritten, or redistributed.
Report: News Corp. board approves company split
NEW YORK (AP) — The board of directors at Rupert Murdoch's News Corp. has approved a plan that calls for splitting the global media conglomerate into two separate companies, one holding its newspaper business and another its entertainment operations, according to a report in The Wall Street Journal.
The Journal, which is News Corp.'s flagship newspaper, cited a person familiar with the situation late Wednesday saying the board voted unanimously to approve the plan. It said the move is expected to be announced early Thursday.
News Corp. spokeswoman Julie Henderson had no comment on the report.
The New York-based company confirmed Tuesday that it was weighing the plan. Its stock has jumped 11 percent since the news of the proposed split emerged.
Under the proposal, News Corp. will be divided into two publicly traded companies. One entity will operate as a newspaper and book publishing firm. The other will be an entertainment company that includes Fox News channel, the Fox broadcast TV network and the 20th Century Fox movie studio.
The publishing side is expected to be much smaller, with some analysts valuing it at about $5 billion, compared to the current market value for News Corp. as a whole of about $54 billion.