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Rupert Murdoch Confirms News Corp. Split

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After enduring about 24-hours of rumors, Rupert Murdoch's News Corp. confirmed today that they're splitting their newspaper holdings, including the New York Post and the Wall Street Journal, from their more lucrative film and television division.

...The split will be completed within the next 12 months, with Mr. Murdoch serving as chairman of both companies and chief executive of the entertainment business. Chase Carey will remain chief operating officer of the entertainment group, which will include cable channels like FX and Fox News, the 20th Century Fox studio and Fox Broadcasting. In the coming months, the board of directors will decide who will lead the publishing business.

“News Corporation’s 60-year heritage of developing world-class brands has resulted in a large and unparalleled portfolio of diversified assets,” Mr. Murdoch said in a statement. “We recognize that over the years, News Corporation’s broad collection of assets have become increasingly complex.”

He added: “We determined that creating this new structure would simplify operations and greater align strategic priorities.”

The move of course comes after Murdoch's cronies at the defunct News of the World and perhaps other outlets were revealed to have hacked into the phones of dozens of people, including a murdered teenage girl, and to have paid off police to keep their secrets. Murdoch was described by Parliament as "unfit" to lead his company.

But surely this split is an independent development, right? Just a coincidence?

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Comments

  1. Murdoch states the problem with News Corp without realizing it. They have a "heritage of developing world class brands" and not, as the name might suggest, a heritage of delivering the news. Murdoch has almost singlehandedly destroyed Journalism.

    Posted by: Chadd | Jun 28, 2012 8:54:21 AM


  2. I am personally going to enjoy watching the NY Post experience a slow, agonizing death.

    Posted by: jamal49 | Jun 28, 2012 11:01:34 AM


  3. This is a strategic move to get into the satellite TV business in the UK.

    Posted by: anon | Jun 28, 2012 11:30:36 AM


  4. More political pantomime from shithead Murdoch and his evil empire. You can guarantee this is some kind of strategy or tax-avoidance scheme.

    The world will be a better place when this "man" dies. He and evil Margaret Thatcher are the last relics of the awful, corrupt, evil 1980's western politics.

    Posted by: Icebloo | Jun 28, 2012 1:17:40 PM


  5. This kind of split is quite common for large companies that are facing serious legal troubles. What no one is plainly saying in their coverage of the News Corp split is that breaking into two separate companies is primarily a "defensive" move -- should the newspaper company tank due to scandal, or more likely, eventually lose a major judgement in a lawsuit, the profitable entertainment company will be "insulated" from mess, and its assets somewhat shielded, as it is now a completely separate corporate entity.

    In fact, a few of the financial institutions involved in the subprime loan mess have done the same "split" to protect themselves from any ongoing fallout going forward. (There is still plenty of legal action going on in this area -- it's just not a hot news story anymore.)

    There are also some secondary benefits to be gained in the financial markets, as scandals/lawsuits drag down a company's worth. As two companies, the entertainment company's worth can theoretically soar, leaving behind the financial burden and falling worth of the newspaper company.

    Posted by: D.B. | Jun 28, 2012 1:52:22 PM


  6. Our news controlled by one person is scary. A foreigner even scarier!

    Posted by: Ty | Jun 28, 2012 10:01:23 PM


  7. D.B. is rite the split makes business sense. Still it makes it easier to wrestle control away from Old Mudrock for at least one company. Hopefully some anbitious person will do so. he has one handsome son whose been away too long I think. He had some more liberal leanings I thought - if you get my drift.

    Posted by: Ana Stesia | Jun 28, 2012 10:05:06 PM


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