The Wall Street Journal is reporting that News Corporation is considering splitting into two separate companies — one for its publishing companies and one for its entertainment businesses. The end result would have Fox, Fox News and 20th Century Fox on one side and the News Corp. newspapers on the other. And of course, Rupert Murdoch would control both.
The split has been presented to Murdoch before, but he has always resisted. Apparently he’s warming to the idea because he’s facing pressure from investors who want to be able to focus on the profitable entertainment businesses without being tied to the publishing ones. As the Journal notes, the good money is all in the former:
The entertainment assets make up by far the bulk of the company, contributing three-quarters of the $25.34 billion in revenue for the first nine months of the fiscal year. Those assets accounted for roughly 90% of the operating profit in that period.
The New York Times reports that if the split happens, it would likely be announced this week.