Media and entertainment giant News Corp. (NWS: Quote,NWSA: Quote) plans to separate its publishing and entertainment businesses, thus creating two companies, the Wall Street Journal reported, quoting people familiar with the situation.
The firm's publishing business includes the Wall Street Journal, the Times of London, the Australian newspaper and HarperCollins book publishing.
20th Century Fox film studio, Fox broadcast network and Fox News channel are part of the entertainment business, which generated the bulk of the company's revenue and operating profit in the first three quarters of the year.
News Corp. chairman Rupert Murdoch, who previously did not approve of the idea, is now said to be not averse to it. A final decision on the split is not yet made. A separation will not change the control of the Murdoch family on any of the businesses.
News Corp.'s outside investors are said to be more interested in the entertainment business, rather than in the slow-growing publishing business.
The company was involved in an embarrassing phone hacking scandal in the U.K. recently.
NWS closed on Monday at $20.28, down $0.29 or 1.41 percent, on a volume of 2.94 million shares.
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by RTT Staff Writer
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