News Corp.’s Murdoch Said to Consider Splitting Company

[dipsydoodle]

Source: Bloomberg news

Rupert Murdoch is considering splitting his News Corp. media company into two, one unit focusing on publishing and the other on entertainment, according to two people familiar with the matter.

Murdoch, who is chairman and chief executive officer of News Corp., is overseeing internal discussions on whether to separate the New York-based company’s businesses, said the people, who asked not to be identified because a decision isn’t final. The talks are at a late stage, one of the people said.

The potential split of the company comes as U.K. regulator Ofcom considers whether News Corp. should be allowed to keep its 39 percent stake in British Sky Broadcasting Group Plc. (BSY) A phone- hacking scandal at the U.K. newspapers thwarted News Corp.’s plans to take full control of Britain’s biggest pay-TV operator, which was led by Rupert’s son James for almost a decade. Some News Corp. shareholders have pushed for a breakup as a result.

“I don’t think most corporate shareholders want to have exposure to U.K. newspaper assets,” said Alex DeGroote, an London-based analyst at Panmure Gordon. “But I think Rupert Murdoch wants the assets, so there’s a conflict between what shareholders want and what Rupert wants, so one way around that is de-merge them.

Read more: http://www.bloomberg.com/news/2012-06-26/murdoch-said-to-consider-splitting-news-corp-in-two.html

[johnfunk]

1. Something to do with rumors that NY Post has its own "phone hacking" scandal bubbling under?

I'm just sayin'... let's hope the rumors prove true.

[dipsydoodle]

2. Doubt it

Its been clear for sometime that his real interest is simply in Pay TV and he's somewhat disenchanted with the newspaper industry. Even if News Corp had increased it stake in BSkyB here in the UK the deal was that they would have lost Sky News. As such any allusions here with Fox become pretty meaningless too.

[nanabugg]

3. Ouch!!! It's multiplying!!!! Two monsters must be better than one. nt

[clang1]

4. Excellent idea, let it divide itself

Last edited Tue Jun 26, 2012, 10:51 AM - Edit history (12)

the propaganda arm, and the entertainment arm. Makes it easier to see what's what. His newspapers and television stations have been nothing more than propaganda by deception in this country for too damn long and it is part of the rot that is in our country and abroad as we can see in England and elsewhere in the world. It is all cancer to democracy and freedom and it makes people rabid. We all know this, it's just common knowledge now and no one can say it isn't without blatantly lying about it.
I am sick of that. Fox news is a huge part of the reason of why so much of the country is polarized, over everything. Until more people admit that, and then do something about it, things will remain polarized. People so far split apart like this are very easy to manipulate in my opinion. It's part of what has been happening in America for a long time now and it needs to stop.

--As usual people need to ask themselves who truly benefits from this?
--Why have we allowed someone that is really not even an American to help divide our country like this? It is perturbing to me and it should be perturbing to more Americans as well. It's corrosive, not News.

[cstanleytech]

5. If the Murdoch family still has majority control over both its hardly a division. nt

[clang1]

6. Heh heh. n/t

[dipsydoodle]

7. Update : News Corp confirms it is considering split

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

The media giant said it was exploring the creation of "two distinct publicly traded companies".

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

http://www.bbc.co.uk/news/business-18590415

[Gormy Cuss]

8. How can they split on that basis?

AFAIK all of News Corp.'s assets are entertainment.

[clang1]

9. Lol Sick entertainment

Not my own taste for sure Lol.

[Trillo]

10. Split a person, end up with two dead half carcasses.

Split a company, end up with a bundle of cash.

Ain't corporate personhood grand?

[clang1]

11. Yep

Last edited Tue Jun 26, 2012, 01:46 PM - Edit history (3)

Best democracy money can buy, and some people, just a few, deserve it too. Maybe more than a few even...

[hughee99]

12. He's trying to figure out how to split it so one new company gets the assets

the other gets the liability. Perhaps he'll create the News Corp. Liquidation Company (or "Old News Corp&quot which is responsibility for the debts and lawsuits and a new News Corp to take all the assets.

[dipsydoodle]

13. There are distinct divisions between the assets

of the news media companies and the pay tv side etc. Any transfers of those assets would stand out a mile. quite aside from complicating the issue.

[hughee99]

14. "Stand out a mile" is fine with Murdoch, as long as it leaves him the smallest legal fig leaf

to protect his assets, his wealth and influence will do the rest.

[Mopar151]

15. It's what you do when part of your company is taking a major dump

And you'd like the other part to be worth something - anything! after the smoke clears.

[clang1]

17. Yep. Damage control

I hope for more damage, that they they can't control. They need it. So does Democracy.

[dipsydoodle]

16. Approval of the shareholders is attributed to today's 6.5% share price increase

That's on top of a 15% increase year to date.