27 Jun 2012

News Corp confirms it is considering split

10:02 am on 27 June 2012

Rupert Murdoch's News Corporation has confirmed that it is considering splitting in two.

In a brief statement, News Corp confirmed it was considering a restructuring to separate its businesses into two distinct, publicly traded companies.

The Wall Street Journal, which first revealed the possibility of News Corp splitting in two, said that the Murdoch family, which has 40% of the voting shares in News Corp, would retain control of both separate firms.

While News Corp gave no details, reports say it will split its broadcasting and publishing businesses.

Analysts say this would protect its more profitable TV operations from its UK newspaper business, which is embroiled in a phone-hacking scandal, the BBC reports.

A split along those lines would put the 39% stake that News Corp owns in UK satellite broadcaster BSkyB into a separate company from its British newspapers.

The announcement pushed News Corp shares 8.3% higher on the US stock market on Tuesday.