News Corporation has confirmed it's separating its publishing and entertainment divisions.
The ABC reports the split reflects long-standing investor concern that the publishing assets are weighing down the company and serves to distance its more valuable entertainment assets from a phone hacking scandal in Britain.
Rupert Murdoch, 81, will be chairman of both companies and will be chief executive of the entertainment business.
The split will separate newspapers like the Wall Street Journal, the Timesin London, the Sun and The Australian from the fast-growing entertainment unit that includes Fox News.
The move was approved by the News Corp board in New York.
Revenue at the broadcasting division was about $US24 billion in the year to June 2011, compared with $US9 billion from publishing.
Mr Murdoch insists the split of the $US60 billion conglomerate is not a reaction to the continuing fallout from the phone-hacking scandal in Britain.
No, got nothing to do with it at all, at all, he said. This is not in reaction to it. This is looking forward to what's best for our companies and what's best for our shareholders.