Murdoch Reveals Future of News Corp.

Media mogul and US-based Australian Rupert Murdoch has outlined what the future holds for News Corp. after he announced that the company will split into two.

Under the restructuring plan, the Australian pay TV companies and newspapers of News Corp. will remain together. The international publishing assets, however, will be separated from the TV and film division.

The publishing company will own and manage News Corp.’s newspapers, including the titles New York Post, the Sun in the UK, Wall Street Journal, and The Australian.

The Australian arm of News Corp. will retain a stake in Fox Sports and Foxtel. According to News Corp. CFO David Devoe, maintaining the Australian assets as one entity is a simpler management approach. He added that this is the current set-up of the Australian business anyway so it’s best to leave it at that.

Industry analysts said that the split is what many shareholders have been hoping for the last few years. Many believe the decision came after the phone-hacking scandal in the UK reached its peak last year.

The media magnate, however, refuted this speculation. He denied that the split is to separate the entertainment business that was continuously hounded by the UK scandal.

Despite the business split, Murdoch retains control of the companies. The media mogul also said he will continue to work as chairman of the two businesses and chief executive for the entertainment company.