News Corp. has formally split itself into two.
The company’s newspaper and publishing businesses will become their own company, retaining the News Corp. name. Dow Jones editor in chief Robert Thomson will become CEO of the new News Corp. January 1. The company is also shutting down The Daily, its iPad-only newspaper.
News Corp.’s TV and film businesses, which include Fox News Channel, Fox Broadcasting and 20th Century Fox, will become part of what is now called “The Fox Group.” The Fox Group will be led by Rupert Murdoch as CEO, and Chase Carey as president and COO.
“At Fox Group, what began with the acquisition of a modest film studio over 25 years ago has grown into one of the world’s most successful media companies of all times, defying conventional wisdom at every turn by pursuing excellence in creativity and innovation,” said Murdoch in a statement. “Fox Group is perfectly positioned to deliver even more inspiring stories that engage audiences through film, television, sports and digital platforms, driving not only financial results but a lasting imprint on the millions of people who enjoy our various services, in every corner of the world.”
After the jump, Murdoch’s note to staff explaining the moves.
Dear Colleagues,
I have great news to report regarding the proposed separation of our company into two global leaders.
In keeping with our rich, 60-year heritage of bringing news to the world, the publishing entity will retain the name News Corporation. The media and entertainment company, which has excelled at engaging, entertaining and enlightening people around the globe for almost three decades, will be named Fox Group.
In addition to announcing the names of the two entities, we are taking an important step in advancing this separation process today by announcing several additional details. We have appointed Robert Thomson as Chief Executive Officer of the proposed publishing company. Robert, who has served as Editor-in-Chief of Dow Jones and Managing Editor of The Wall Street Journal, is a true visionary, as proven by his outstanding leadership at the Journal, which has become the dominant newspaper in the U.S. and has greatly expanded its global reach through WSJ.com, which now publishes in eight languages.
In addition, today we are announcing key members of the leadership team for the new News Corporation, including Bedi Ajay Singh, who will assume the role of Chief Financial Officer, and Paul Cheesbrough who will serve as Chief Technology Officer (he holds the same title at News Corp. currently). Keisha Smith, formerly of Morgan Stanley, will be the new company’s director of Human Resources. I am excited about the appointments of Bedi, Paul and Keisha, as they bring incredible talents to the team and share with Robert and me the desire and will to bridge the triumphs of our past with the opportunities of tomorrow.
Many of you know that a belief in the power of the written word has been in my bones for my entire life. It began as I listened to my father’s stories from his days as a war correspondent and, later, a successful publisher. It deepened when, starting in grammar school, I rolled up my sleeves and worked alongside fellow students to publish school journals. I witnessed the hunger people had for well-written, thoroughly observed stories … stories that provide not just information, but insight. That hunger is alive and well today; my personal mission is to serve and satisfy the human need for insight as well as I possibly can.
Storytelling of a different kind has also empowered us to fuel the human spirit and enlighten the lives of millions of people through our film, TV and sports properties. We began more than 25 years ago with the acquisition of a modest but promising film studio and bucked conventional wisdom at every opportunity on our way to creating the world’s most successful media and entertainment portfolio. Fox Group will continue this mission and in doing so will engage audiences in a way that not only drives financial success, but also inspires the imaginations of millions of people around the world.
During our history, you – the people of this company – have told these stories with astonishing skill and ever-increasing success. The key to that success – one that has been reinforced time and time again as this company has grown – is in finding the brightest, most talented, most innovative people and setting them out on a journey of discovery.
Because of your creativity, commitment to innovation, and continuous dedication to achieving the future, we have barreled through the boundaries of what is possible.
That’s the secret to our success: Your talent. Your inspiration. Your passion.
While we will face challenges at both companies going forward, together, we have already achieved the seemingly impossible. Now imagine what we can accomplish with the focus, flexibility and collaboration that two independent entities will make possible.
Change always breeds uncertainty, but let me be very clear about one thing that is certain: We aren’t finished achieving what others deem impossible. Not even close.
It is an honor and a pleasure to work alongside you. The work you do every day never fails to amaze and inspire me.
And the best news of all … We’re just getting started.
My very best regards,
Rupert Murdoch