Media and entertainment giant News Corp.'s (NWS, NWSA) board has authorized the plan of separation of the company's publishing and media and entertainment businesses into two distinct publicly traded companies after yesterday's board meeting.
The new global media and entertainment company that would be created through the proposed transaction would consist of News Corp.'s cable and television assets, filmed entertainment, and direct satellite broadcasting businesses, including Fox Broadcasting, Twentieth Century Fox Film, Twentieth Century Fox Television, Fox Sports, Fox International Channels, Fox News Channel, Fox Business Network, FX, Star, the National Geographic Channels, Shine Group, Fox Television Stations, BSkyB, Sky Italia and Sky Deutschland, among others.
The new global publishing company which would be formed via. this proposed transaction would consist of News Corp.'s current publishing businesses, and its book publishing, education and integrated marketing services units.
The company believes that this separation would improve overall shareholder value and allow each company to focus on and pursue distinct strategic priorities and industry-specific opportunities, and benefit from greater financial and operational flexibility.
Following the transaction closure, shareholders would hold interests in a publishing company, consisting of the largest collection of publishing assets and a new digital education group, and a global media and entertainment company, each of which would benefit from enhanced strategic alignment and increased operational flexibility with respect to an unparalleled portfolio of assets, brands and franchises.
Upon the completion of the proposed transaction, News Corp.'s shareholders would receive one common share in the new company for each same class News Corporation share currently held. Following the separation, each company would maintain two classes of stock namely Class A Common and Class B Common Voting Shares.
Upon closing of the proposed separation, Rupert Murdoch would be the Chairman of both companies and CEO of the media and entertainment company, while Chase Carey would serve as President and COO of the media and entertainment company. The split up may be complete in around 12 months.
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