Why is News Corp Splitting Into 2 Companies?
This is another talk of the town issue where i read on Springhill Newscenter Home Loan group,.. i will never prolong the story, when Embattled Rupert Murdoch’s empire, News Corp. appears to be planning a spin-off of its core businesses. Its own flagship newspaper, The Wall Street Journal, has reported this week that the company’s board is considering a proposal that will make its publishing arm into a separate company.

Springhill Group Home analysts expect such separation of assets would appease regulators and could help it to avoid selling a USD 6.9 billion stake. Fortunately, the same became true for investors as the announcement was met with the rallying of News Corp’s stock to 8.3% high — the highest level it has reached since 2007. “News Corp. has one of the best TV businesses, but some people like musty, dusty publishing companies that pay great dividends. It’s a good thing for shareholders.” said an analyst from Lazard Capital. The media conglomerate has not yet specified which business units would be grouped together but the company is reportedly mulling to separate the entertainment operations from the book and newspaper publishing one.

http://newscenter.springhillgrouphome.com/2012/07/news-corp-splitting-into-2-companies/

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News Corp is splitting up into two companies because analysts and others believe that Rupert Murdoch wants to insulate his film and television division from the chaos and trouble in the newspaper and book publishing arm of his business. The 'News of the World' phone hacking debacle is what has prompted this move.

Rupert Murdoch will still exert significant control over his empire. He will be Chairman of both operations. In addition, Mr. Murdoch will be the Chief Executive Officer (CEO) of the entertainment division. Upon the completion of the split up, the Entertainment arm will go by the new name "Fox Group."

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The way I heard this story is that NewsCorp wants to insulate its more lucrative/profitable segments from the scandal-ridden and less profitable print side of the corporation.

They don't want to abandon or shut down the whole news operation in favor of television - they're even rumored to be considering the purchase of the Los Angeles Times and the Chicago Tribune in the US - but the board of directors and Rupert Murdoch have apparently been persuaded to allow the news side of the business to fend for itself more than it has had to in the past.

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I think it also has something to do with the fact that the brand has been hurt by scandals in England with the phone tapping and such. Because of that, they want to sort of spin off some parts so they won't be dragged down by the harm done to NewsCorp's reputation.

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NewsCorp is splitting into two separate groups so that each group can focus specifically one on media.

The conglomerate announced plans this summer to split into two public companies, one for its newspaper and book publishing business and the other for its fast-growing movie and TV operations. (news.yahoo.com)

Recently, things have been more and more difficult for print media as more people switch to online consumption of news and entertainment.

One of the most interesting points here is that the companies iPad only news outlet, “The Daily” is being shut down too, because apparently an iPad-app only news outlet cannot garner a big enough audience. Instead, they will focus on multi-format publications apparently. Will this help save the company? They are banking on it, but this is a new age for media.

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