With a simple statement saying that "it is considering a restructuring to separate its business into two distinct publicly traded companies," News Corp. this morning confirmed the thrust of a story reported by its own Wall Street Journal, NPR's David Folkenflik tells us.
As that Journal report states, the media and entertainment giant ruled by Rupert Murdoch "is considering splitting into two companies, separating its publishing assets from its entertainment businesses."
And why would it do that? The Journal says "a split of News Corp.'s businesses would be welcomed by outside investors who are more interested in News Corp.'s television and film assets than its slow-growing publishing businesses."
The New York Times adds that "restive shareholders have often said they would prefer that the company focus on its more lucrative entertainment assets, which together generated $23.5 billion in revenue in the year ended in June 2011. The publishing business, by contrast, contributed $8.8 billion in revenue."
NewsCorp. has also been rocked, of course, by the "tabloid scandal" that has engulfed its British newspapers.
According to the Journal, "the idea under consideration isn't expected to change the Murdoch family's effective control of any of the businesses."
Update at 8:15 a.m. ET, June 27. David Folkenflik's Report On Wednesday's Morning Edition:
"Splitting Outlets Could Help News. Corp. Investors."