Rupert Murdoch is considering splitting his News Corp media company into two, one focusing on publishing and the other, entertainment, according to two people familiar with the situation.
Murdoch, who is chairman and chief executive officer of News Corp, is overseeing internal discussions on whether to separate the New York-based company's businesses, say the pair, who sought anonymity because a decision is not final. The talks were at a late stage, one of them said.
News Corp shareholders have advocated a breakup to separate the larger film and television operation from newspaper publishing, which has been hurt by slow industry growth and a scandal in Britain.
Chief operating officer Chase Carey said in February that executives discussed a breakup after inquiries into hacking and bribery at the company's British newspapers, a controversy that sank its bid for satellite broadcaster British Sky Broadcasting Group.
"Those that want the higher growth of the broadcast business and have it able to chase new markets will pay a premium for that," said Peter Esho, the Sydney-based chief market analyst at City Index. "This is also a good way to quarantine the rest of the business from the recent issues in the UK, when publishing is a small part of the business."
