REUTERS, NEW YORK TIMES, WALL STREET JOURNAL
Rupert Murdoch's News Corp is considering splitting itself into two separate companies, according to a number of news reports. The Wall Street Journal, which is owned by News Corp, said that the TV and entertainment businesses would be separated from publishing in the proposed division.
Australian stock in News Corp. jumped 2.41% following reports of the split.
Shareholders have been pushing for a spin-off of the slower-growth publishing division after a phone hacking scandal hit its British newspapers, sending shockwaves through the group and forcing News Corp to pull its biggest-ever acquisition of the pay-TV group BskyB, Reuters reports.
A final decision on the split has yet to be made; Robert Peston, Business Editor for the BBC, said on Twitter: "News Corp won't comment on story in house-newspaper @WSJ that all newspapers to be put into separate company. Will be seen as confirmation".
The New York Times added that with 40% of the voting shares, the Murdoch family would retain control of both companies.